The romance of the Rothschilds

Presented to the

UNIVERSITY OF TORONTO
LIBRARY

by the

ONTARIO LEGISLATIVE
LIBRARY

1980

THE ROMANCE OF
THE ROTHSCHILDS

THE ROMANCE

OF

THE ROTHSCHILDS,.

Ike

BY

IGNATIUS BALLA

LONDON

EVELEIGH NASH

1913

CONTENTS

CHAP.

I THE RISE OF THE ROTHSCHILDS ... 7

II THE FOUNDER OF THE HOUSE 35

III THE ENGLISH ROTHSCHILDS 73

IV BARON JAMES ROTHSCHILD . . . .140

V THE ROTHSCHILDS AT NAPLES. . . . 209

VI THE FRANKFORT HOUSE 240

VII THE VIENNA ROTHSCHILDS 266

LIST OF ILLUSTRATIONS

Te f*

NATHAN ROTHSCHILD . . . Frontispiece

(Founder of the London House)

THE ROTHSCHILD OFFICES IN ST. SWITHIN's LANE, E.G. 74

LORD ROTHSCHILD 138

(h'roiH a photo by Elliott & &')')

FIGURE OF THE TERRIFIED JEW IN VERNET'S

FAMOUS PICTURE 183

BARON ANSELM MAIER ROTHSCHILD. . . . 244

THE ROMANCE OF THE
ROTHSCHILDS

I

THE RISE OF THE ROTHSCHILDS

THE Rothschilds, who have held in their
hands for more than a century the threads of
the financial life of the Old World, were
described by Heine many decades ago as the
first bankers in Europe. Even to-day there is
not one of the more recent financial dynasties
that can boast a wealth equal to that of the
famous Jewish financiers. The mere mention
of their name suggests the power of millions,
and, to those who are ever ready to pay homage
to wealth, these descendants of a petty hawker
of the Frankfort ghetto seem to be the very
personification of earthly riches.

7

The Romance of the Rothschilds

This fabulous success of the Rothschilds
seems the more remarkable when we learn
that the immediate founder of this powerful
dynasty, the aged Maier Amschel, was, little
over a hundred years ago, a small trader in
the Jewish quarter of Frankfort, and cannot
have had even a dream of the millions which
his family afterwards amassed. He began his
career as a modest shopkeeper; his sons
became millionaires, his grandsons multi-
millionaires. Three generations sufficed to
convert this obscure ghetto-family into the
greatest financial power in the world. That
fact is enough of itself to invest the origin
of the Rothschild firm with the significance
of an historical event, nor is the interest
lessened when we realise the profound in-
fluence it has had on the fate of Europe
and the whole political and social life of the
west.

But the conscientious historian who would
relate the almost legendary course of their
story will find it useless to explore the dusty
archives of States and finger the mouldering
8

The Rise of the Rothschilds

parchments of heraldic offices in search of

earlier traces of the family. There are no

documents carrying back the story of the

Rothschilds to the Middle Ages. No ancestor

of theirs ever sought the laurels of war on the

battlefield, and certainly it is related of none

that he joined a crusade to rescue the Holy

Land from the heathen. We do not find the

name of a Rothschild in the illuminated

chronicles of the medieval monks, and we

should vainly seek their arms in the gaily

coloured lists of the ancient knights. No

ancestral castle of theirs stands, like a falcon's

nest, above the steep shores of the Rhine

or the Danube, threatening the prosperous

caravans of the plain. The few indications

that we have go to show that the earlier

members of the family were all peaceful

tradesmen. The founder of the present house

was certainly born at Frankfort on the Main,

in the ghetto of which he inaugurated that

struggle for life which was destined to have

so brilliant an issue. It was a time when the

Jewish inhabitants groaned under severe

9

The Romance of the Rothschilds

disabilities, yet the quick-witted and quiet-
tempered Jew never abandoned his race and
religion. He struggled against prejudice, and
toiled for the welfare of his family; he strove
to raise himself above the crowd and to place
the future of his house on foundations of
granite. " Work " was his knightly motto ; and
for the sake of his wife and children he worked
assiduously from early morning until night,
when the civic authorities fastened, with heavy
chains and locks, the doors which confined
Maier Amschel and his co-religionists in their
narrow ghetto. He bore oppression in silence;
he was one of the patient — one, indeed, of the
most patient of the sons of Israel in the old
Hansa city.

The patent of nobility of the Rothschild
family and their diploma of barony are hardly
a century old, yet the story of this hundred
years is not the mere story of a banking house ;
it is, if we regard it aright, the history of
Europe, the story of the debts and loans of
its constituent States during a century. Nearly
every civilised State in Europe figures in that
10

The Rise of the Rothschilds

calendar, on some more or less important occa-
sion, for some comparatively large sum of
money. What State was there in the nineteenth
century that needed money to cover its debts
and did not turn to the Rothschilds? Even
when it did not have direct recourse to their
coffers, it sought their powerful mediation. It
was by means of State loans that the house
attained its unique position as a financial auto-
cracy and cosmopolitan power. As Ludwig
Borne says, with his caustic humour : " The
balance of power in Europe is maintained by
the Jews. They find money for one country
to-day, for another to-morrow, for all of them
in turns, and they thus preserve the general
peace."

The higher nobility of Germany and Austria-
Hungary have done considerable business with
the Frankfort and Vienna branches of the
firm, and we find the name of many a prince
and lord of the land in the old ledgers of the
offices in the Frankfort ghetto. The following
list of nobles to whom money was advanced by
the Rothschilds during the sixth decade of the

ii

The Romance of the Rothschilds

last century will give some idea of the extent
of their operations l-

4

Prince Isenburg Birstein 92,000

„ Sayn-Wittgenstein-Berleburg . . . 25,000

„ Waldburg-Zeil 15,000

Count Alexander Szlavnicza 55»°oo

Ritter von Riese 20,000

Prince Isenburg-Wachtersbach 24,500

„ Solms-Lich 25,000

„ Lowenstein-Wertheim 104,000

„ Lowenstein-Rosenberg 30,000

„ Victor Isenburg 12,000

Count Viczay 58,000

„ Szapkry 25,000

„ Leiningen-Westerberg 6,500

„ Niczky 28,000

„ Hunyady 41,500

„ Sze'chenyi 150,000

„ Henkel v. Donnersmark 94,000

„ Froberg 8,500

Prince Galantha Esterhazy 533>°°o

Baron von Greifenklau 10,000

Prince Schwartzenberg 416,000

„ Waldburg-Wolfegg 66,000

„ Waldsee 30,000

Count Wartenberg 173,000

Prince Wied 87,000

The Rothschilds, however, never cared for
loans to private individuals. "If there is
question of a loan, let it be to a State," was
their motto. It would be extremely difficult to

1 The German figures are expressed throughout in round
English sums. — Trans.

12

The Rise of the Rothschilds

calculate how much profit they made by these
loans to princes and States. They were never
content in those days with the mere interest on
the capital they advanced, but they also engaged
in very extensive speculation on 'Change with
the stock which a State issued on the strength
of their operations. By this means the firm
became a financial power of the first magnitude,
and we may recognise one of the chief founda-
tions of their success in the action of Maier
Amschel when he sent his five sons to open
banks in five important cities. The third son,
Nathan, captured London and England, while
his younger brother James ruled at Paris.
The fourth son became the financial prince of
Italy; the eldest of the brothers controlled the
financial situation throughout Germany from
his office at Frankfort; and the second son,
Solomon, lived at Vienna and was regarded as
the Croesus of the dual monarchy.

Within the space of a hundred years the
Rothschild family made a fortune amounting
to more than four hundred million pounds
sterling. Amongst the many contemporaries

13

The Romance of the Rothschilds

who endeavoured to penetrate the secret of this
marvellous success was the distinguished
diplomatist and friend of Prince Metternich,
Friedrich von Gentz, who wrote as follows —

' The question how the Rothschild house
could do all that it has done in so short a time
has assuredly occupied the attention of many
a business man and politician. Possibly, how-
ever, it is not so difficult to give an answer as
is generally believed. Any one who disregards
chance gains and realises that in all large
operations success depends, not only on seizing
and using the favourable moment, but still
more on a strict adhesion to certain funda-
mental principles, will easily see that there
were two maxims in particular of which this
house never lost sight, and to which, apart
from its shrewd conduct of business and taking
advantage of favourable opportunities, it owes
the greater part of its actual prosperity.

' The first of these principles was the
determination of the five brothers to conduct
the whole of their business in constant co-opera-
tion. That was the dying command of their
14

The Rise of the Rothschilds

father. If they have prospered, it is because
they have been absolutely faithful to this rule.
After the death of the father every offer, no
matter whence it came, was discussed by them
collectively; every operation of the least im-
portance was carried out according to an agreed
plan, and by their joint exertions, and they all
shared equally in the profit. No matter how
great the distance was between their centres —
Frankfort, Vienna, London, Paris and Naples
— it never interfered with their common under-
standing. In fact it had the additional advan-
tage that each of them could be perfectly
acquainted with the situation in his own part
of Europe and assist more effectively in carry-
ing out the business undertaken by the whole
house.

' The other principle they kept in mind was,
not to strain after an excessive profit in any
operation, to impose definite limits on all they
undertook, and, as far as human foresight
and prudence could achieve it, leave nothing
to chance. This maxim — Servare modum
finemque tenere (' Be moderate, and never

15

The Romance of the Rothschilds

lose sight of the goal ') — is one of the chief
secrets of their strength.

' There is no doubt that with the resources
at their disposal they might have obtained a
much greater advantage in one or other opera-
tion. But, even supposing that it would not
have affected the security of their operations,
they would in the end have made less profit
than they did by distributing their forces over
a large number of operations which occurred
repeatedly and in varied conditions. That
there should be no lack of such opportunities
they were assured, not only by their wealth and
credit, but by the confidence which they had
inspired in all governments and large houses
by the moderation of their charges, the punctu-
ality of their deliverances, the simplicity and
clearness of their plans, and the intelligent way
in which they carried them out. The success
which others sought in the field of commerce
or of war by master-strokes, which often lead
to defeat instead of victory, was attained
by them through the happy application of
the best principles of mercantile strategy :
16

The Rise of the Rothschilds

not by audacity, but by prudence and per-
severance.

' The personal or moral character of the
five brothers has had no slight influence on
the success of their undertakings. It is not
difficult to create a numerous party when one
is powerful enough to enlist large numbers in
one's interest. But to bring into agreement the
voices of all parties and win the regard of all,
one needs, not only material resources, but also
certain qualities of character which are not
always associated with power and wealth. To
do good to those about them, to refuse a help-
ing hand to none in distress, to hasten to the
relief of every one who sought it, no matter to
what class he belonged, and to give a pleasant
form to the most material services — these ways
of attaining a sincere and deserved popularity
have, as thousands can testify, been followed
by all the members of the family, not out of
calculation, but out of their natural humanity
and benevolence. They have attained one
thing that few favourites of fortune attain :
they have won a host of friends without making

B 17

The Romance of the Rothschilds

a host of enemies. It might be said in all
truth that they have paralysed the tongue of
jealousy and malice. In such circumstances
they needed no external distinctions to adorn
a position that was already so distinguished
in itself. Their merits, however, have been
publicly recognised by several Courts.

" Besides various decorations which have
been conferred on them, all the brothers were
made Commercial Privy Councillors of the
kingdom of Prussia in 1818 and Financial
Councillors of the Hesse Court in 1815. His
Majesty Francis of Austria gave them an
hereditary title in 1815, and in 1822 he raised
them to the position of Austrian barons. In
addition the brother who settled at London
was appointed Austrian Imperial Consul in
1820, and two years later Consul General;
while the brother in charge of the Parisian
house also was made Consul General in 1822."

Thus does Gentz speak of the children of
the Frankfort ghetto, but he is mistaken in
regard to the distinctions conferred on them.

It was not in 1815 that they received the title
18

The Rise of the Rothschilds

of nobility from the Austrian government; the
elder brothers Anselm and Solomon were
ennobled by a decree of September 25, 1816,
and the younger brothers Karl and James on
October 2ist of the same year. It is strange
to find that the third brother, Nathan, who
already dominated the Exchange at London,
was passed over in this nomination. When
there was question of giving a title to the four
brothers, they tried to design a coat of arms
which would reflect their financial position and
great success. They thought of combining the
arms of Hesse, England and Austria, and
adding a five-fingered hand as a symbol of
their unity and cohesion. It was also intended
to include a hound as a figure of fidelity and
a stork as a symbol of piety and prosperity.
However, the actual Rothschild arms, which
was sanctioned by the Austrian Government on
March 25, 1817, only contains a part of these
things. Six years later — not seven, as Gentz
says — on September 29, 1822, they were
created barons : an imperial favour which was
extended to Nathan also. On this occasion

B2

The Romance of the Rothschilds

they adopted a fresh coat of arms, the motto
of which consists of the three Latin words,
" Concordia, Integritas, Industria " (Concord,
Integrity, Industry).

The Rothschilds did not at this time owe
their power to money only, as their fortune
was not yet large enough to enable them to
compete with and defeat bankers with a larger
capital. To reach this stage they needed the
quality which we find in Nathan, who obtained
an unlimited control of the Exchange by
colossal operations on it. In their efforts to
obtain power we find not only the three
qualities which are indicated in the above
motto, but a very remarkable co-operation on
the part of the five brothers, and a consider-
able faculty for grasping favourable oppor-
tunities at once and utilising them with great
energy. Further, their fortune was not due
merely to the State loans which they negoti-
ated, but to their traffic on a large scale with
every kind of stock on all the exchanges of
the western hemisphere. In this way they
obtained an insight into the economic and
20

The Rise of the Rothschilds

political conditions of every land, were enabled
to make a shrewd calculation of the chances
of war breaking out, and, according to the
aspect of the political horizon, either to buy
up or throw all their holdings on the market.

The man who is unfamiliar with financial
matters will be inclined to suppose that in their
operations the Rothschilds spun a particularly
complicated net of plans and needed very
elaborate arrangements. He will imagine that
this machinery, working in all directions and
turning everything into money by means of its
secret structure, could only be created by the
intense speculative power of particularly gifted
men like the Rothschild brothers. The facts
are otherwise, however, and if we withdraw the
veil from the action, not only of the Roths-
childs, but the financial world generally, any
one can understand how much speculation on
'Change has contributed to the accumulation
of the enormous fortune of the house. An
example will show this more clearly. The
founders of the business negotiated with a
certain State a loan of so many millions, con-

21

The Romance of the Rothschilds

sisting of shares of a hundred florins each.
The shares were handed over to them at 96
florins, and they sold them at 130. This gave
them a clear profit of 34 per cent. They had at
their command many means of increasing the
interest of the public in the new loan and confi-
dence in themselves. Whenever they regarded
a stock as good, there was quite a struggle to
secure it. Everybody wanted to invest in it, so
as to secure a better return on his capital. Other
business men would have been satisfied with
the above-mentioned profit which the Roths-
childs secured at one stroke. They thought
otherwise ; they bought and sold the stock over
and over again, according as they rose or fell
in value. In this way they drew enormous
sums into their coffers.

It is said that in order to depreciate the price
of the stock, they floated a new loan shortly
after the first ; they had decided on this in con-
cluding the first arrangement, but the general
public had no suspicion of it. Then, when the
new issue brought down the value of the pre-
ceding one, they entered the market as buyers.

22

The Rise of the Rothschilds

They bought their own stock for less than they
had sold it for, and in the continual rise and
fall, which they controlled with masterly skill,
they won an enormous profit. The five cities-
London, Vienna, Paris, Frankfort and Naples
— were an excellent theatre for observing the
ebb and flow of the financial tide and deploying
the speculative power of the Rothschilds.
Naturally, they reaped their best harvests at
times of grave disturbance, especially during
war. In such cases the secret of their success
was to learn the coming events before all
others; and this was not a work of chance, but
the outcome of their distinguished connections
and the fine organisation of their business.

As they knew well that a rise, even for a few
minutes, may be of the greatest importance on
the Exchange and lead to immense gains and
losses, they were always very careful to enter
into the closest possible relation to the decisive
factors. They therefore succeeded in drawing
into their sphere of interest distinguished
politicians and men of high social standing, so
that they could learn important events before

23

The Romance of the Rothschilds

others. That was a very considerable aid,
especially at a time when the postal service
was imperfect and there was no telegraph or
telephone. They attached the greatest import-
ance to receiving information from high
sources, and for this end they made influential
acquaintances at the courts of the chief ruling
families. In this, as in their willingness to
make sacrifices, they showed a quite remarkable
knowledge of men. We cannot regard that
either as a merit or a defect; it merely shows
the great power of adaptation that circum-
stances had engendered in them. The high
officials whom they pressed into the service of
their plans were, for the sake of their families,
quite ready to turn their confidential knowledge
into coin. It was quite in keeping with the
moral notions of the time. If the Rothschilds
had not made use of such means, their rivals
would have done so. Public opinion was
indifferent to such things. What people
thought of them at the time may be seen in
the case of Gentz, who quietly and with the

greatest complacency notes in his diary the
24

The Rise of the Rothschilds

sums that he received from the Rothschilds for
such services. They were shrewd enough to
know that in financial matters we have not
to deal with supernatural beings, but mortals,
whose god is gold.

They thought no sacrifice too great to attain
this end. Immense sums were paid for in-
formation, but they brought a considerable
interest. Secretaries of State, ministers, ambas-
sadors, and the most intimate servants of
princes vied with each other to give the Roths-
childs the first news; the outbreak of the July
Revolution at Paris, for instance, in the year
1830, was learned by Baron Nathan Rothschild
before anybody else in England, and it was he
who informed the English Government. At
Vienna their chief informant was Baron Gentz ;
he never speculated on the Exchange himself,
but he " won " considerable sums, which the
Rothschilds did not grudge because he enabled
them to make vastly larger sums. Baron
Solomon deplores the death of Gentz in the
following words in a private letter to his
brother James at Paris —

25

The Romance of the Rothschilds

" He was a friend indeed ; I shall never
have another like him. He has cost me large
sums of money — no one would believe how
much — for he merely wrote on a piece of paper
what he wanted, and he had it at once; but
since his disappearance I begin to see how
much we have lost, and I would give three
times as much if I could bring him to life
again."

By the organisation of State loans, shrewd
moves on the Exchange, and their excellent
supplies of information, the children of the
ghetto at length attained the position of which
a writer of the time said : " There is only one
Power in Europe, and that is Rothschild; his
satellites are a dozen other bankers, his soldiers
are all decent merchants and workers, his sword
is speculation. Rothschild is a result that was
bound to come; if it were not Rothschild, it
would be another. He is, however, by no
means a chance result, but an inevitable out-
come of the State principles which have ruled
Europe since 1813. Rothschild needed the
State in order to become Rothschild, and the
26

The Rise of the Rothschilds

States of Europe needed a Rothschild. Now
that he has become what he is he needs the
State no longer; the State needs him."

A writer in the Augs burger Allgemeine
Zeitung says : ' The remarkable position of
the Rothschild family is one of the most extra-
ordinary phenomena of our eventful age. In the
sixteenth century, when German commerce was
still in its infancy, the Fuggers succeeded in
securing wealth and fame and the title of count
by the great services they rendered and loans
they made to the Emperor Maximilian. The
only other instance of this kind in history is
that of the Rothschilds. Their contemporaries
—the Barings, Hopes, Torlonias, and Aguados
—have also, it is true, made colossal fortunes
by their business, and even negotiated loans
with many governments, but they never suc-
ceeded, as the Rothschilds did, in raising them-
selves to a higher political sphere. While the
circumstances of the time were favourable to
them, we must recognise that they turned them
to advantage with rare ability, and so attained
the remarkable position as leading financial

27

The Romance of the Rothschilds

power which enables them to exert so powerful
an influence.

" In the course of twenty-eight years the
house of the Rothschilds has, in the many
loans which it has made to England, Austria,
France, Prussia, Russia, Naples, Denmark,
Belgium, and most of the princes of the
German Confederation, paid hundreds of
millions to these States, with remarkable
promptitude, and often at a time of grave
political crisis, and has in this way proved the
strength of its resources. Yet all who had a
share in these transactions saw their specula-
tions always crowned with success, and the
general confidence in the Rothschilds was
unlimited.

"When, in recent years, the speculative
spirit turned to industrial concerns, and rail-
ways became a need of the continent, they
again took the initiative and put themselves at
the head of the movement. The Versailles
Railway on the right bank of the Seine is their
creation, and in Austria they gave the first
impetus to undertakings of this nature by con-
28

The Rise of the Rothschilds

structing the great Northern Railway ; wherever
a really national work was to be undertaken one
could rely on the co-operation of their capital.

"But in order to appreciate properly the
higher point of view of the Rothschild house
we must distinguish several periods in its
development. The first began in the year
1815 and lasted about ten years; in this period
the foundations of their vast fortune were laid.
Then came the lamentable year 1825. Exces-
sive speculations of all kinds led to a fearful
reaction in business. Hundreds of well-known
business-men got into difficulties or failed.
The Rothschilds, however, were not merely
uninjured; they lent the aid of their great
resources and unlimited credit on all sides, and
it is well known that at that time their supplies
of silver and gold put the Bank of England in
a position to meet its obligations. The busi-
ness world already knew the wealth of the
Rothschilds, but it was only during this brief
and unsettled period of their career that their
power was fully developed. From that time
they had a considerable political importance,

29

The Romance of the Rothschilds

and no Government undertook any large
financial operation without their assistance.
In their third period, which extends to the year
1830, their repute and influence as the leading
financial power continued to rise. Then the
July Revolution suddenly broke out and shook
European credit to its foundations, and with
that begins the fourth and most brilliant stage
of their financial activity.

" Large numbers of banking houses were
destroyed by the lightning of the political
storm, while the Rothschilds not only sustained
the tempest, but offered the aid of their great
resources to the new French Government,
which seemed to them a security for the main-
tenance of law and order. The incalculable
sums which they put at the disposal of the
Powers in that critical period and the fine
diplomatic tact they displayed in the most
delicate situations won for them the unreserved
confidence of the various cabinets. The Roths-
childs at that time did more for the maintenance
of peace than the world suspected.

* The question naturally occurs, how they
30

The Rise of the Rothschilds

found it possible to keep their position and
influence in France under so many different
governments? But the answer is not difficult.
They belong to no political party; they are
friends of the country, of law, and of peace,
and as such they could offer their great financial
influence just as easily under the heterogeneous
ministries of Decaze, Villele, Martignac, or
Polignac, as under the government of Louis
Philippe.

"The unquestioned power that the Roths-
childs have over commerce in general is equally
just in its foundation and beneficent. Their
motto is, ' Peace and the Development of In-
dustry'— and these alone promote the welfare
of nations. The age of illusions is over;
nations have long been convinced that their
efforts to maintain peace do far more for their
material interests than the sanguinary clash
of political theories. A wealthy people is
a powerful people, and will not suffer any
arbitrary oppression.

" History will quote the firm of the Roths-
childs as a remarkable example of the attain-

The Romance of the Rothschilds

ment of enormous wealth and far-reaching
political influence by a shrewd spirit of specu-
lation, perseverance, and fraternal unity, aided
by fortune and wit."

The prophecy of this philosophical journal-
ist of the Augs burger Allgemeine Zeitung has
been fulfilled. The career of the Rothschilds
is a typical example for millions of people,
and, though it is not every one who can attain
such success, these people will look back with
admiration on old Maier Amschel, and many
generations will learn a lesson from his life
as long as the triumph of the human mind
compels attention. Indeed, apart from the
romantic element in their story, the Roths-
childs are entitled to great consideration from
the fact that they have saved large numbers
of firms from ruin. They thus became the
Caesars of the world of finance. This is not
a mere phrase or an exaggeration. Other
bankers were, in fact, only their vassals; they
might, as they willed, raise them or destroy
them, but they chose to support and strengthen,
them as long as they did not interfere with the
operations of the Rothschilds.
32

The Rise of the Rothschilds

Since the year 1840, which brought a tempest
upon the economic life of the European States,
the business transactions of the Rothschilds
have found an additional channel. They
turned to the increasing branches of industry-
railways, mines, ironworks, etc. — and founded
banks, and thus found a means of making fresh
and hitherto unexploited wealth. They re-
tained their dominant position in the financial
world, as the magical power of their name was
enhanced. They were now the unquestionable
masters, not only of the Exchange, but of trade
and commerce. Numbers of prosperous banks
and industries sprang up at their command,
and they became owners of mines, mills,
factories, and estates in every part of the world.

The actual power of the Rothschilds cannot
be compared with that of the five brothers in
earlier days, though their fortune is larger than
ever. This is due, however, not to a deprecia-
tion of ability in their descendants, but to a
change of circumstances. The financial posi-
tion of the various States in Europe has so
immeasurably improved during the last hun-
dred years that they no longer need an
c • 33

The Romance of the Rothschilds

intermediary in contracting loans. Rival banks
have also done their share in bringing to a
close the supremacy of the Rothschilds. But,
if their autocracy in the money-world is ended,
their vast fortune remains, and surpasses that
of any of the American millionaires. Neither
Rockefeller, nor Carnegie, nor Astor, nor any
other Transatlantic prince of finance, has a
capital equal to that of the Rothschilds. It is
estimated at more than four hundred million
sterling, and it increases daily. It would be
bound to increase even if they never engaged
in another transaction, as, invested at an inter-
est of not more than four per cent., their
capital would yield more than £16,000,000
yearly, or more than £45,000 a day.

The mind almost reels in considering these
colossal sums. Baron Albert of Vienna was
guilty of no exaggeration when he said : " The
house of the Rothschilds is so rich that it
cannot do bad business." And this enormous
fortune has been amassed by one family in the
course of a single century.

34

II

THE FOUNDER OF THE HOUSE

THE founder of the great Rothschild
dynasty was a poor tradesman, born at Frank-
fort on the Main at the beginning of the
eighteenth century. His origin and ancestry
cannot be traced with any confidence. We
know only that he belonged to the Jewish
nation, which, as Heine says, "came from
Egypt, the land of crocodiles and priests, and
brought with it, besides its skin-diseases and
the stolen gold and silver vessels, a positive
religion or church, a structure of dogmas to be
believed and ceremonies to be performed, the
prototype of later State-religions. Then began
the plague of proselytism and religious com-
pulsion, and all the horrors that have cost the
human race so much blood and so many tears.
This nation, with its primitive evils, has long
been damned, and has suffered the torments
C2 35

The Romance of the Rothschilds

of the damned for centuries. What a land
Egypt was ! Its products have defied time.
Its pyramids are indestructible, its mummies as
incorruptible as ever; and just as indestructible
is that mummy of a people which wanders over
the earth, swathed in its ancient documents, a
petrified piece of history, a spectre that main-
tains itself by money-changing and the sale of
old clothes."

At that time the Jews were more hardly
treated in Frankfort than in any other German
town. In the fourteenth century the fathers
of the city had confined them in a "Jews'
street," which was closed with chains every
night. They also passed a law that not more
than two Jewish couples were to marry every
year, so concerned were they at the extraordin-
ary industry, endurance, and increasing range
of the children of the ghetto. For centuries
the followers of Moses vegetated in this narrow
street, and no one could have dreamed that
from it a man would issue who would lay the
foundation of the greatest financial power in
the world.
36

The Founder of the House

For five centuries the Frankfort Jews
struggled against their oppressors, and at last
the hour of deliverance struck. With a stroke
of the pen Napoleon lifted the yoke from their
shoulders, and opened the other streets of the
city to them. As soon as the French army had
left the city, however, the citizens again took
from them their liberty, and compelled the
Jews to purchase it later at the price of about
£40,000.

The ancestor of the Rothschilds, Amschel
Moses, lived in Jew Street, in an overcrowded
house. History tells us nothing further about
him, and the most industrious research has dis-
covered little more than that he was a Jewish
hawker. The year of his birth cannot be
determined, and even the origin of the name
Rothschild is obscure. According to some it
was derived from some town or other, as many
Jewish families in Germany took their name
from a place — either their birth-place or the
last place in which their fathers lived — and
were distinguished in this way from the other
Jews in their new home. The Oppenheimers,

37

The Romance of the Rothschilds

Wieners, Pragers, Hamburgers, Frankfurters,
and Berliners — all Jewish families — owe their
names to this custom.

According to others Rothschild comes from
the Danish, and is taken from the place-name
Roeskilde; but this is inconsistent with the
fact that Amschel Moses had no surname. It
is certain that he was a poor hawker, and it
seems that he first dealt in curiosities and all
sorts of things, in very distressing circum-
stances, in the city of Hanover, and that he
took the wanderer's staff in his hand when he
found that he could make no headway. In his
search for another dwelling he reached Frank-
fort, settled in Jew Street, and put a red
shield l over the door of his house. The houses
had no numbers at that time, and some kind
of sign was put over the door to distinguish the
house and its inhabitants. Some of the shields
bore the figure of a bear, a cock, a stag, a pike,
or some other living thing. When the animal-
world was exhausted, they had recourse to

1 In German " rothcs schild," hence, it is suggested, the name
Roth-schild (pronounced Rot-sheelt, not Roths-child, in our
preposterous English way). — Trans.

38

The Founder of the House

inanimate things, and painted a ship, a castle,
a sickle, a star, or a bouquet on the board, for
the purpose of identification. .When a house
was mentioned, it was customary to name the
figure on its shield, which was enough to 'dis-
tinguish it. It is very probable that the name
Rothschild arose in this simple way.

In this house with the red shield, then,
Maier Amschel, later the founder of the
financial dynasty, saw the light. When he
bought the house in 1780, it already had a
number — 69. The shield had in the meantime
been painted green, but it remained "red
[roth]" in the memory of the people, and so
Maier Amschel was called Rothschild. His
father, who had not succeeded in rising out of
the class of trading Jews, had died on October
6, 1754. Maier Amschel, the eldest son of
Amschel Moses, was born in the year 1743,
and was therefore only in his twelfth year when
his father died.

Very little is known about his childhood;
hardly more than about the early years of any
other child of the ghetto. Who gave any

39

The Romance of the Rothschilds

thought to a boy of the " Street "?; He was
no different as yet from the others, and the
Frankfort ghetto cannot possibly have dreamed
that one of its children would become lord of
war and peace, which depend so much on
finance.

Maier Amschel was not at first destined for
commercial life. His father sent the boy to
the famous Talmud-school at Furth, but died
soon afterwards. The boy would gladly have
continued his theological studies, out of
respect for the wish of his father and in accord
with his own inclination, but the means were
wanting and he had to abandon that career. At
Furth, however, he had become interested in
archeology, especially numismatics, and this
not only enabled him to form excellent con-
nections, but also to earn money. Returning
from Furth, he tried at first to maintain his
father's business, but he does not seem to have
succeeded. Relying on his young strength, he
tied up his bundle and went to Hanover, where
his father had unsuccessfully sought to make
his fortune. There he took a humble position
40

The Founder of the House

in the Oppenheimer bank, and soon won the
confidence of his chief by his industry and
modesty. Maier Amschel Rothschild worked
for many years at his plain desk in the bank,
and the master entrusted the former candidate
for the position of rabbi with the conduct of
various important concerns, which he managed
so well that Oppenheimer at length took him
into partnership.

He could now look forward confidently to a
future free from care, but the ambitious youth
from Frankfort had other ideas. It is possible
that he already dreamed of a vast banking
business, to be founded by himself or some one
of his blood. He felt that he was called to
something higher than life in the service of
another, and was convinced that his ability
would yield far more if he were independent
and worked on his own responsibility. He left
Hanover and returned to his native town, and
began at once to put his idea into execution. At
Frankfort, one of the most important com-
mercial towns of Germany, the situation at that
time was particularly favourable to the develop-

The Romance of the Rothschilds

merit of trade. The Frankfort markets were
the most frequented in the country ; buyers and
sellers flocked to them from all parts, and more
than 50,000 foreign traders put in an appear-
ance at the fair-time.

Here began the real career of Maier Amschel
Rothschild. His native town became the
nucleus of his varied enterprises. His clear
head for business and the punctuality and
integrity with which he met his obligations soon
attracted the interest of the wealthier traders,
and it happened more than once that money-
changers of Frankfort, Mayence, or Darm-
stadt sought the co-operation of the young and
insignificant beginner. He responded to these
advances with the utmost discretion and
honesty; his repute spread farther and farther,
he won greater confidence, his income in-
creased, and it was not long before he was able
to buy a house at Frankfort — in Jew Street, of
course. He purchased the house with the
green shield in which he had been cradled.

Here, in the house which saw the birth of the
later Caesars of the Rothschild dynasty, he
42

The Founder of the House

applied his unbending will and power of
endurance to the enlargement of his business.
For a long time, indeed, he was unable to rise
above the crowd of third-rate business-men.
But from his earliest years he had cultivated a
taste for old coins and medals, as his father
had initiated him to the knowledge of these
things and often entrusted him with the task
of exchanging them. The boy was interested
in the period, value, and beauty of the old
coins, and his interest did not fade in the course
of time, but led him to acquire a very extensive
knowledge of coins. Owing to his studies
at Fiirth this knowledge was of a scientific
character, and it at length brought him into
contact with the Landgrave William IX of
Hanau, afterwards Prince William I of Hesse.
This connection enabled the indefatigable Jew
to command a larger capital and increase his
fortune. His reputation as a numismatist
spread throughout the country and reached the
ears of Baron Estorff, the confidential friend
of the Landgrave of Hanau. He had known
in Hanover of the extraordinary expertness of

43

The Romance of the Rothschilds

the young Jew, and he drew the attention of
the Landgrave to Rothschild.

The way in which Maier Amschel Rothschild
reached the Landgrave and the first impression
that he made on this very wealthy noble gave a
decided turn to his fortunes. General Baron
Otto August Estorff, the intimate friend and
adviser of the Landgrave, one day, during a
dispute as to the origin of an old coin, men-
tioned the name of Rothschild, and said that
it was extremely important to obtain his opinion
on the matter, if not to do financial business
with him. On this advice Maier Amschel was
summoned to the Landgrave's palace, and
found that noble deep in a game of chess,
when he arrived. Rothschild, who was ex-
pected, had been admitted to the room by the
servants, and, standing behind the Land-
grave's chair, quietly watched the game. The
Landgrave happened to turn round and
notice the Jew waiting respectfully, and he
asked —

"Do you play chess?"

"Yes; and if Your Highness will kindly
44

The Founder of the House

make this move, the game will be decided in
your favour in three moves."

It was, as a matter of fact, a master-stroke
that Rothschild recommended, and the Land-
grave won the game. When it was over, he
entered into conversation with the insignificant
little Jew, and, when Rothschild had gone, he
said to Baron Estorff —

" General, that is certainly no fool you have
brought to me."

" I trust Your Highness will be just as
pleased with the other good qualities of
Rothschild," said Baron Estorff.

" I hope so, if he is as honest as he is clever,"
was the reply.

That happened about the year 1785, in which
the Landgrave acceded to the throne of his
little kingdom. His business relations with
Rothschild were for a time of no great con-
sequence; the Jew merely obtained old coins
and medals for the Landgrave and negotiated
bills from London, which the Landgrave, like
his father, received from the English Govern-
ment for supplying soldiers. At that time

45

The Romance of the Rothschilds

every German prince had the right to maintain
any army he pleased, and this unrestricted
power led to a very selfish traffic in men.
Landgrave Karl of Hesse had started this
traffic in human flesh, and by means of it raised
his fortune to more than a million sterling.
His grandson Frederick II had followed the
footsteps of his "wise" ancestor and made a
good deal out of this profitable business. After
his death William IX did not hesitate to main-
tain the traffic, and in the second year of his
reign he contracted with England to supply
12,000 men. For this he received more than
£80,000, which he added to the £2,500,000
which his "glorious" predecessor had got for
selling his subjects to the North American
colonies.

These immense sums, which made the young
Landgrave and later Prince William one of
the wealthiest monarchs of his time, were the
direct occasion of the rise of the Rothschilds
to the position, which they held for half a
century, of the " sixth great Power in Europe."
William IX wished to invest his money in the
46

The Founder of the House

most profitable way, and kept quite a staff of
agents for the purpose. Rothschild was one
of this staff, and he found plenty of oppor-
tunities to prove his ability and show that he
deserved the confidence granted him. His
confidence was at that time the chief capital of
the founder of the Rothschild dynasty, and
William IX gave it him without reserve.

On the strength of this confidence Roth-
schild, in 1789, asked the prince, who had now
been living at Cassel for four years as the suc-
cessor of his father, to entrust him, like the
Hanau bankers, with the sale of the English
bills of exchange, reminding him of the many
years he had served him. The Landgrave,
however, was extremely prudent in money-
matters; he was not satisfied with the personal
impression which his agents made on him, but
made exhaustive inquiries before he would
grant such a request as that of Rothschild.
From good authorities at Frankfort and Hanau
he learned that Rothschild always had good
credit with the Hanau brokers and thoroughly
deserved it. He could secure the highest terms

47

The Romance of the Rothschilds

in exchange and was regarded as an industrious
and honest man, so that, on business principles,
one could safely grant him the credit he asked.
In consequence of this report Rothschild was
granted a credit of eight hundred pounds ster-
ling, and, as he served the Landgrave well, the
credit was gradually enlarged until he sur-
passed all his rivals. He had still, neverthe-
less, the modest title of "court-agent," while
the Jewish banker at Cassel, David Feiwel,
was " upper court-agent." The members of the
firm of Riippel & Harnier, at Frankfort, alone
had the rank of "court-bankers." Maier
Amschel only became " upper court-agent " in
1 80 1, his eldest sons, Anselm and Solomon,
being at the same time appointed agents of the
Ministry of War. The third son, Nathan, had
already gone to England, and the youngest two,
Karl and James, knew nothing as yet of rank
and title, but enjoyed the golden age of care-
free childhood. Maier Amschel had already a
large family, and, when the lamp was lit at
nights, he and his wife found ten children

gathered about them.
48

The Founder of the House

In the meantime, the financial transactions
of the Landgrave had attained a much wider
range, and his business with the English money
had assumed entirely the form of a banking
operation. The large vaults of the residence
at Cassel always contained an immense quan-
tity of coin, often more than £100,000, which
might at any time be invested in profitable
undertakings. Besides this, the Landgrave
had large deposits in the banks of London and
Amsterdam. At London the firm of Van
Notten operated with the Landgrave's money,
and in the course of twelve years they had more
than £100,000 in the English Funds, besides a
number of large and small loans to private
individuals of all classes, from superior officials
and officers to shoemakers and bakers. The
Landgrave also granted loans to his fellow-
princes, and Rothschild had a good deal to
do with these financial negotiations.

William IX was regarded as one of the
greatest capitalists of the time, so that any
prince who needed money naturally turned to

him. How these things were done is best seen
D 49

The Romance of the Rothschilds

in a negotiation with Denmark in the year 1784.
The Danish court needed money, and in-
structed its confidential agent, named Wachter,
to ask the Cassel court for a loan. William IX
was then only heir to the throne, but the
financial advisers who controlled the affairs of
the old Landgrave refused to come to a de-
cision until they heard the opinion, of the prince.
When Wachter heard this, he at once went to
Hanau to see the heir to the throne. The latter
was, like his father, not well disposed toward
transactions with important ruling houses, on
account of the bitter experience that the family
had had in such matters. This the prince
bluntly told the Danish agent, who used his
utmost powers of persuasion to remove the
resistance of the prince, and tried to convince
him that there was not the least risk, but con-
siderable advantage, in the loan, as it would
put an influential ruling house under obliga-
tions to him and secure its most friendly con-
sideration. All his eloquence was useless, and
Wachter could make no headway until, follow-
ing the court-custom of the time, he loaded the
50

The Founder of the House

prince's children with valuable presents, and
promised to repeat his generosity if the heir to
the throne placed no obstacles in his way with
the old Landgrave. That was enough. The
Crown Prince at once gave his consent, saying
that he would be pleased to see the Danish
request granted. Pleased with his success,
Wachter hastened to Cassel, but there found
himself opposed by a whole regiment of
generals, ministers and councillors. They
formed the Landgrave's " Council of War," and
would not allow the Danish agent to make any
progress until he had "paid his footing" with
each of them.

William IX did not care for direct negotia-
tions; his interest had often to be aroused by
a third person before he would do anything.
His financial affairs were controlled by a
directive council consisting of four members,
who received a commission of one per cent, on
every loan, besides the presents made to them.
That suited them very well, and, as they re-
ceived bribes and gifts in connection with every
transaction, they would only enter into deals

D2 51

The Romance of the Rothschilds

with speedy repayment, in order to add to their
gains. This circumstance explains the reluct-
ance of princes and higher nobles to enter into
direct negotiations with the Hesse court; they
always used an experienced agent, as the prince
himself afterwards liked to do. Thus, as both
parties felt that it was desirable to have an
experienced intermediary whom they could
always trust, a number of agents won the favour
of William IX, and one of those who were
found worthy of this favour was Maier Amschel
Rothschild.

Rothschild did not owe this entirely to his
merits. He would never have been recognised
on that account at the court of William IX,
where every one was grasping and corruptible,
if he had not shrewdly appreciated the situa-
tion. He enlisted influential officials in his
interest, and allowed the directive council to
have its share in his profits, as the Landgrave
would do nothing without this council. Gradu-
ally he succeeded so well that at length it was
most profitable to the prince's advisers if all
the best transactions were put into the hands
52

The Founder of the House

of Rothschild; it was of advantage to him and
to them.

As early as 1801 Rothschild received a loan
of £14,000 from William IX at four per cent.,
but it was not until a year later that he secured
a very important piece of business, when he
changed £10,000 worth of four and a half per
cent. Bavarian stock into bonds of the city of
Frankfort at the same rate. In such matters
he had a way of his own, as we find best in the
Danish documents. The Danish Ministry of
Finance, which up to 1780 placed its stock
abroad, generally used Amsterdam for the pur-
pose; afterwards it engaged the services very
frequently of the great Frankfort bankers, the
brothers Bethmann. In the year 1804 they
were to sell the remainder of one of these
Danish loans, but found it impossible to do so,
partly on account of the political situation, and
partly on account of the scarcity of money. At
the end of October there was a chance of
placing a few hundred thousand dollars, but
at a loss of eight per cent. Meantime, however,
a far better offer was made to Copenhagen by

53

The Romance of the Rothschilds

the Altona banker Lawaetz, whose resources
were much greater than those of Bethmann
Brothers. It was clear that the offer was made
on behalf of a third person. Lawaetz did not
deny this, but would on no account give the
name of his client. As a matter of fact, it was
the son of the Frankfort ghetto, Maier Amschel
Rothschild. He was not, of course, using
money of his own; William IX was behind
him, and this was the real reason for the secrecy.
It was probably Rothschild who let the
Danish court have ;£ 12,000 in 1802, but no one
knew in Copenhagen whence the money came.
Then Lawaetz offered twice that sum, observing
that his client was a Frankfort man who did
not wish the bankers of that city to know any-
thing of the business, and therefore wanted the
bonds sent direct to Cassel, where the money
would be paid at once. Although Rothschild
did not allow his name to appear in the matter,
the fact that Cassel was to be the place of
payment shows us the source of the money.
When the business was finally settled, however,
Lawaetz directed that the coupons should be
54

The Founder of the House

sent to the upper court-agent Maier Amschel

Rothschild, who would deliver the money.

From this the Danish ministers could easily

conclude who was the real agent.

Lawaetz had said, in making the offer : " The
leaner is a very wealthy capitalist, and is very
well disposed toward the Danish court; it might
be possible to obtain larger sums on better
terms." In point of fact, larger sums were
afterwards advanced to Denmark in the same
way, and by the year 1806 the loans amounted
to nearly £250,000. The terms, however, were
not easier, but much harder, on account of the
general scarcity of money. The very menacing
political conditions also added to the nervous-
ness of the Hesse court, and a new Danish
State-loan at the beginning of 1806 almost
failed. On this occasion Rothschild himself
went frequently to Hamburg and Mecklenburg;
he took the money with him, and the negotia-
tions were almost concluded when the Danish
authorities declared that they could not accept
the terms. Later, however, a loan of about
£110,000 was negotiated with Lawaetz, and in

55

The Romance of the Rothschilds

this contract the name of Rothschild appeared
openly for the first time as an agent of Cassel.

Shortly afterwards Bethmann Brothers made
the Danish court a somewhat better offer of a
loan of £41,000. They found themselves,
however, unable to keep their promise and to
meet other obligations ; indeed, they had to ask
the return of a small advance that they had
made to Denmark in February of that year.
That strengthened the reliance on Rothschild,
with whom such things never happened, for he
always kept his word to the letter, no matter
how the political conditions affected the money-
market. Once more he came to the assistance
of Denmark, which had been put in a very
difficult position by the failure of the Beth-
manns, and let them have £40,000 or £50,000
through Lawaetz of Altona.

It was in the year 1806 that Rothschild's star
began to shine with greater splendour. The
Danish loans had considerably increased the
capital of Maier Amschel, and, what was far
more important, he enjoyed the unqualified and
unwavering confidence of William IX. This
56

The Founder of the House

was of the greatest consequence to Rothschild
in that eventful age. William was compelled
by the French invasion to fly from his country
and entrust a large part of his wealth to Roths-
child, who, in co-operation with his son Nathan
at London, took care safely to invest the
prince's wealth. It was not merely on account
of the danger to his fortune that William IX
fled before the French ; the real reason was that
he was opposed to all foreign politics and to
the French in particular. It is true that in the
sale of soldiers he was chiefly influenced by
pecuniary considerations, yet he had contracted
to let England have 12,000 men who, he knew,
were to fight against the French in the pay of
England. In this he had given another proof
of his hatred of the French, a sentiment which
he had expressed in the following words in the
first years of Napoleon's reign : " I would rather
be a Prussian general than a king by the grace
of Napoleon."

The French were fully informed of William's
sentiments, and he in turn knew what Napoleon
intended to do to him. Hence, when the

57

The Romance of the Rothschilds

French took the field against Prussia and
Russia, he dreaded the anger of the Corsican
and fled from the country. At first he went to
his elder brother at Schleswig, and soon after-
wards, in 1808, began to live at Prague, where
he was painfully surprised to learn that
Napoleon had issued the following bulletin—

' The house of Hesse-Cassel has sold its
subjects to England for many years, and the
prince has made large sums of money by this
means. This shameful avarice puts an end to
his house. It has ceased to reign."

The first care of William IX, when he fled
from his residence in Hesse, had been to save
the enormous store of money which he had
acquired, partly by inheritance, partly in the
"honest manner" we have described. As he
had absolute confidence in Maier Amschel, he
felt that he could not leave his treasure in safer
hands, though he also entrusted large sums to
other individuals. There are various and con-
tradictory versions of the amount which he
confided to the care of Rothschild. According
to some, the amount which Rothschild is sup-

58

The Founder of the House

posed to have buried in his garden at Frankfort
was about a quarter of a million sterling. There
is some mistake in this report, as at that time
no Jew was allowed to own land in Frankfort
or the surrounding country. Rothschild cer-
tainly had a house in Jew Street, but there was
no room for a garden there. The " Street " was
so narrow that the causeway for foot-passengers
was only a few feet in width. It was quite im-
possible for a carriage to draw up before the
house.

The treasures of William IX, which Roths-
child preserved very loyally, might easily have
proved dangerous to him. On January 28,
1806, Marshal Augereau besieged Frankfort,
and, as the citizens were accused of receiving
English goods and protecting dangerous Eng-
lish agents, the marshal imposed on the city a
contribution of four million francs. The wealth
of William IX and even the life of Rothschild
were in grave danger during that period. If
the French had learned where the dethroned
prince had deposited his fortune, they would
certainly not have hesitated to appropriate it,

59

The Romance of the Rothschilds

and Maier Amschel would have been severely
punished for concealing it.

A reliable contemporary and eye-witness, the
famous historian Schlosser, who lived in Frank-
fort at that time, writes as follows about the
prince's wealth and the way in which Rothschild
concealed it —

" All of us who then put our trust in Frankfort
and Prussia and admired their manifesto were
glad that, within a fortnight of the prince de-
claring himself neutral in the struggle against
Napoleon, a punishment fell on him, and we only
regretted that a sense of duty prevented us from
telling the French that his ill-gotten gold was
stored in Amschel Rothschild's cellar. It was
hidden in Rothschild's wine-casks, as the decree
of Napoleon had closed the Continent against
England, and that country had ordered re-
prisals, so that nothing could be taken to
England from German ports."

The legend given in Schlosser's words does
not square with the facts. Tradition is apt to
give an interesting and often a fantastic turn
to facts, and in this case it departs from the
60

The Founder of the House

truth. It is a fact that, when William IX fled
from his little realm, he entrusted part of his
money to Rothschild. But although according
to Schlosser and others Maier Amschel hid the
whole of it in his garden and his wine-casks, we
have documentary evidence that these stories
are at variance with the historical truth. It is
possible that Rothschild hid part of the money
in his cellar, but he was far too shrewd a
business-man to let such an enormous capital
lie fallow, especially at a time when gold was
so scarce, and money could be invested with the
greatest security at a very high rate of interest.
Hence, before the French troops barred the
way, Rothschild sent as much as he could of the
Landgrave's money, as speedily as possible, to
his son Nathan in London.

" We had no time to lose," Nathan Rothschild
afterwards said, " and my father sent the money
to me in England. On one single occasion I
received £600,000 from him by post, and I
invested this so profitably that the prince after-
wards sent me the whole of his stores of wine
and linen."

61

The Romance of the Rothschilds

We thus learn from the words of Nathan,
Maier Amschel's third son, that the prince en-
trusted to his Frankfort agent the enormous
sum of £600,000. But it is further clear from
Nathan's words that, owing to the breach of
communication, his father did not succeed in
sending the whole of the prince's money to
London. It is certain, therefore, that the
money confided to Maier Amschel amounted
to more than £600,000. But the prince's for-
tune was much larger than this, not including
precious stones. It is probable enough that the
treasure which Maier Amschel hid in his cellar
or garden consisted of these jewels, which could
not be conveyed to London.

However that may be, the older Rothschild
was fated never to restore this immense treasure
to the hands of William IX. When William
was at last free to return to his dominion, in
the year 1813, Maier Amschel Rothschild
had already passed to the realm of eternal
peace.

The prince had, however, not to deplore

the loss of his money; Maier Amschel's sons
62

The Founder of the House

jn

handed it over to him with considerable interest.
The prince, who had almost regarded his
treasure as lost, was the more surprised at this
conduct, natural as it was, since he had not been
accustomed to finding such honesty in his
agents. The Rothschilds did not suffer for
their honesty. The prince hastened to tell in
every court in Europe how the Rothschild
brothers had repaid with high interest the
money he had entrusted to their father, and this
won confidence for them, and laid the founda-
tion of their financial greatness.

And the nearer they approached the courts
of princes and saw their repute and capital
grow, the more carefully they sought oppor-
tunities to find an outlet for their spirit of
philanthropy. They had inherited this spirit
from their father, who had always had quite
a court of poor people about him. Maier
Amschel had a way of his own of giving alms.
As a devout Jew he believed that God is most
pleased with those gifts for which the giver
receives no thanks. He therefore went through
the ghetto during the night, hurriedly thrust a

63

The Romance of the Rothschilds

few pieces into the hand of the first needy man
he met, and disappeared before the man could
mutter his thanks.

As Frankfort became the capital of the re-
erected principality, the large-hearted prince
granted the Jews the full rights of citizenship.
Rothschild was appointed member of the
Election Council as a recognition of his merits,
but he had no opportunity to enjoy the dignity,
as he died on September 19, 1812, in the
seventieth year of his age.

When he felt that death was approaching,
he gathered his five sons about him and ex-
horted them to work in union, and to discuss
and carry out in common all their affairs. They
must never abandon the religion of their fathers,
and must ask the advice of their mother as long
as she lived. And in order to preserve this
unity in later generations, they must always
choose wives in their own family.

The five Rothschild brothers and their chil-
dren were loyal to their father. The youngest
of them, James, the founder of the Paris firm,
married his niece Betty, the daughter of his

The Founder of the House

elder brother Solomon. They still follow this
family tradition as far as possible.

The wealth of the Rothschilds has become
proverbial. Every undertaking of importance
was planned and carried out in common, and
even now the three Rothschild firms — at Paris,
London, and Vienna — co-operate in every large
transaction. As long as the mother, the kindly
and intelligent little Frau Gudula, lived, her
sons came to her from every quarter — Naples,
London, Paris, and Vienna — whenever there
was an important family or business concern to
be discussed. And there, by the mother's side,
in the Jewish house with the green shield,
scarcely twenty years after the father's death,
decisions were reached which had a profound
influence on States and their rulers. More than
once the issue of peace or war depended on
them. The prosperity or misery of whole
countries was in their hands, and even at that
time the children of the Frankfort ghetto
removed ministers and governments.

The aged mother, who saw the influence of

her sons increasing daily, rejoiced to see the

E 65

The Romance of the Rothschilds

power to which she had given birth. Once a
Frankfort woman, not of the highest class of
society, came to her to complain.

" War is breaking out," she moaned, " and
they will take my only son, as I cannot pay the
money to release him from military service."

The aged Gudula smilingly consoled the dis-
tressed mother with the words—

" Do not be afraid; there will not be war. . . .
My sons will not provide the money for it."

This may seem at first sight to be a rather
comical boast on the part of the old lady, yet
it is an incontestable truth that money is needed
for war, and that the Rothschilds meant
" money." The star of the five sons of Gudula
rose higher and higher, and the silver-haired
mother of the Rothschilds, of whom Heine
speaks with such feeling in reproducing a con-
versation with Borne, shared their greatness.
The two German poets were walking one even-
ing through Jew Street at Frankfort.

" Look here," said Borne, according to
Heine, pointing to one of the houses; "in this
little house lives the aged lady, the Laetitia,
66

The Founder of the House

who gave birth to so many Napoleons of
finance, the grandmother of all loans. In spite
of the power of her royal sons she refuses to
leave her humble dwelling in Jew Street, and
she has decorated her windows with white
curtains to-day on account of the great festival.
The lamps, which she has lit with her own
hands, shine cheerfully for the October 18 of
the Jews, which is still celebrated after a lapse
of two thousand years, while the Leipsic festival
of October 18 is not yet fifteen years old, yet is
almost forgotten; the Jews remember the time
when Judas Maccabaeus and his brothers fought
for the deliverance of their country just as
bravely as Frederick William, Alexander, and
Francis did in our time. When the good
woman looks at these lamps, her aged eyes fill
with tears, and she sadly recalls the earlier days
when Maier Amschel, her dear spouse, joined
with her in the feast of lamps; when her sons
were still boys, and placed small lamps on the
ground, and jumped about them in childish
glee, as is the custom in Israel. The older
Rothschild, the founder of the ruling dynasty,

E 2 67

The Romance of the Rothschilds

was a good man, the very embodiment of piety
and kindliness. He had a gentle face, with a
pointed beard, and a three-cornered hat on his
head; his clothes were more than modest —
almost poor. He went about Frankfort in this
way, always surrounded by a crowd of poor
folk, like a court, to whom he gave alms or good
advice; whenever you met a crowd of beggars
on the street with smiling faces, you knew that
old Rothschild had just passed that way."

The sons of the aged and kind-hearted
Gudula were already barons, but still Jews.
Their name then stood for absolute financial
power, and her salon was filled with the choicest
spirits and the elite of society. It gave the
aged Frau Gudula great pleasure to see these
proofs of unprecedented success, but it did not
in the least alter the puritanically simple char-
acter of the white-haired little woman. Her
sons gradually moved into the aristocratic
quarters of Frankfort, Paris, and London, and
became barons and consuls, but the aged
Gudula would not leave the house in which her

husband had died. There she was sheltered
68

The Founder of the House

from the cares and agitations of the world, and
there she trusted, in turn, to lay down her fine-
featured head in her last slumber.

" The mother of the Rothschilds, the Hecuba
of the European Croesus family," said a con-
temporary before her death, "might be nearly
a hundred years old, but is so well preserved
that she goes to the theatre nearly every night.
There she sits, listening attentively, in the pro-
scenium-box, with a guard in her hand to keep
off the glare of the lamps, an ancient Hebrew
cap, adorned with flowers, on her head, no hair
visible, dressed in bright-coloured silk, with
costly lace on her neck and breast. Of her
sons, Anselm resembles her most. Both they
and her daughters have the greatest respect for
her. She still lives in Jew Street, in the same
rooms in which, as the wife of a modest trader,
she brought her sons into the world. She will
never leave these high and sombre rooms, in
the dampest and most unhealthy part of the
town."

" Here," she used to say, " I have seen my
sons grow rich and powerful, and I will leave

69

The Romance of the Rothschilds

them their prosperity, for they would certainly
lose it if I were to give way to pride and quit
my humble home."

Her motherly heart, inclined to superstition
— what mother does not watch the fate of her
children with superstitious fear? — saw the for-
tune of her children intimately connected with
the modest house in Jew Street. The house
and the street were so unhealthy that the sons
repeatedly tried to induce their aged and dear
and superstitious mother to leave it and take
up her residence with one of themselves. But,
with the characteristic obstinacy of an old lady,
she would on no account consent. As she
would not go to the sons, they came to her.
Every night, when the day's work was over,
they went to the mother's house in Jew Street,
which was so narrow that their elegant carriages
had to remain at the corner and they had, like
their mother when she came home from the
theatre, to walk to the house on foot.

Maier Amschel's widow enjoyed perfect
health until her ninetieth year; it was only in
her later years that she began to ail, and that
70

The Founder of the House

was merely due to advancing age. Even when
her frame threatened to relax in its service, her
spirit maintained its freshness, so that, even
when she was not well, she used to joke with
her sons and the physician. She was not
satisfied with the medicines sent to her, and
told the physician.

" For heaven's sake," said the physician,
perhaps a little piqued, " what do you want me
to do? Unfortunately, neither I nor my drugs
can restore your lost youth."

" Dear doctor, you misunderstand me," the
invalid said, smiling quietly ; " I want your
drugs to make me older, not younger."

And she lived to be four years older. In
her ninety-fourth year she followed her spouse
to the grave, closing her gentle and winning
eyes for ever on May 7, 1849.

Her happy marriage with Maier Amschel,
with whom she lived peacefully for forty-two
years in the house of the green shield, issued in
ten children, five sons and five daughters. The
daughters — Charlotte, Isabella, Babette, Julie
and Henriette — married into the .Worms,

7*

The Romance of the Rothschilds

Beyfuss, Sichel and Montefiore families. Of
her sons James was the founder of the Parisian
house, Charles of the Neapolitan, Nathan of
the London, and Solomon of that at Vienna.
The eldest, Anselm, continued the ancestral
house of the Rothschilds at Frankfort.

The sons of the aged Maier Amschel Roths-
child had become princes of finance in five
great cities. And these five cities stand for the
five kingdoms which fell under the rule of the
children of the Frankfort ghetto, the sons of
the man who wished to be a Jewish rabbi.

72

Ill

THE ENGLISH ROTHSCHILDS

IT is unquestionable that Nathan, the third
of the five brothers, was the most gifted intel-
lectually. His splendid business instinct and
the clear-headedness which enabled him to
appreciate at once the full significance of any
event of commercial life made him the chief
worker in building up the greatness and
prestige of the Rothschilds. He had hardly
been two decades in London when he enjoyed
the unlimited confidence of the British Govern-
ment, on account of the great services he
had rendered it, and he retained it during the
fifty years of his active life. Nathan was the
founder of the great London house, although
he was not the first Rothschild to stretch an
arm across the sea from Frankfort to England.
Old Maier Amschel himself had done business
with London. His first connection in London

73

The Romance of the Rothschilds

was the sale of bills in conjunction with the
Van Notten firm; this became more important
when the Prince of Hesse-Cassel began to use
the Frankfort Jew as his agent and hand over
to him the interest on the money deposited in
the London bank, as well as the sums which
were paid him for sending troops to North
America on behalf of England. When the
elder Rothschild had earned the entire con-
fidence of the prince by his honest and profit-
able manipulation of the sums entrusted to
him, he prevailed upon him to appoint his third
son Nathan, who had meantime gone to
London, his agent in that city.

Maier Amschel had been very far-seeing
in choosing London out of all the cities of
Europe for a filial establishment, and in the
course of time it far surpassed in import-
ance all the other houses, even that at Paris
and the ancestral house at Frankfort. The
financial situation in England and the ever-
increasing range of its commerce had much to
do with this. The choice of London proved
to be a most fortunate stroke, justified from
74

THE ROTHSCHILD OFFICES,
St. Swilhin's Lane, London, E.C.

(House on the left with ornamental han^inu siijn.)

The English Rothschilds

every point of view. But it also gained in
importance from the fact that the elder Roths-
child selected his son Nathan for the post, for
in Nathan the business ability of the Roths-
childs reached its highest development.

It was the year 1798 when Nathan Roths-
child came to England and, at first, occupied
himself with the purchase of Manchester goods
in his father's name. This experience was very
useful to him, as it made him familiar with
financial conditions in England and the chief
factors of English trade and commerce.
Afterwards large sums from the capital of the
Prince of Hesse were put at his disposal, and
he invested them so intelligently that his
working capital began to assume extraordinary
dimensions. He soon extended the range of
his operations over the entire Continent, and
began to make his influence felt everywhere in
commercial life. In this way the Rothschild
house began to show promise of becoming a
world-power. Nowhere in Europe had there
hitherto been financial operations on a scale
equal to that on which young Nathan Roths-

75

The Romance of the Rothschilds

child worked. This does not apply, of course,
to the commencement of his career, as he only
began to emerge out of obscurity when, at the
outbreak of the Spanish war, he undertook the
payment of the English army in Spain. From
that time his relations with the Bank of
Ertgland and the Exchange increased, and it
was not long before he occupied a dominant
position on the Exchange.

After the death of Maier Amschel the lion's
share of the activity of the Rothschilds fell
to Nathan, and we have ample and reliable
proof how he accomplished his task, and with
what marvellous good fortune his efforts were
crowned. The evidence does not come from
his own pen, it is true, but it is just as trust-
worthy as if it did. In a conversation which
he had with Sir Thomas Powell Buxton in
1834, when he was already an irresistible power
on the Exchange, he told his guest the most
interesting episodes of his stormy past.
Buxton, who was then conducting an ardent
crusade against slavery, and was destined to
play a great part in abolishing it, was a guest

The English Rothschilds

in the house of the London financier, the
uncrowned king of the money market, and
Nathan described his early successes with the
freshness of a man who was not spoiled by his
later victories and looked back with satisfaction
on the past.

" There was not room for us all in Frank-
fort," he said. " I dealt in English goods.
One great trader came there, who had the
market all to himself. He was quite the great
man, and did us a favour if he sold us goods.
Somehow I offended him, and he refused to
show me his patterns. This was on a Tuesday.
I said to my father : ' I will go to England.'
I could speak nothing but German. On the
Thursday I started. The nearer I got to
England, the cheaper the goods were. As
soon as I got to Manchester I laid out all my
money, things were so cheap, and I made a
good profit. I soon found out there were three
profits — the raw material, the dyeing, and the
manufacturing. I said to the manufacturer :
' I will supply you with material and dye, and
you supply me manufactured goods.' So I got

77

The Romance of the Rothschilds

three profits instead of one, and I could sell
goods cheaper than anybody. In a short time
I made my £20,000 into £60,000. My success
all turned on one maxim. I said : ' I can do
what another man can, and I am a match
for the man with the patterns and all the
rest of them.' I had another advantage. I
am an off-hand man; I made a bargain at
once."

This beginning of Nathan Rothschild's
mercantile career in England must be fixed
somewhere about the year 1800, when a
number of German merchants went to live at
Manchester. Nathan, however, soon decided
to leave the north for London, where he felt
that he would have better opportunities. We
cannot determine the exact year of his settling
in London; it was probably 1806, when he
received a large sum of money from the Hesse
Court, and married Hannah, the daughter of
Barnett Cohen Levi. He had considerable
difficulty in securing her hand, as, at the time
when he courted her, he was still a com-
paratively small trader, and Barnett Cohen,

78

The English Rothschilds

who was wealthy, strongly opposed the engage-
ment, so that at his first request Maier
AmschePs third son ran some risk of being
put out of the door. He was, however, a
resolute and tenacious man, and nothing could
turn him aside from his purpose. Barnett
Cohen meantime learned the extraordinary
ability of his would-be son-in-law, and saw that
he would have a brilliant career. He was not
deceived, as a great future awaited Rothschild
in London, where Van Notten had hitherto
been the exclusive agent of the Hesse Court,
but was shortly afterwards displaced by the
twenty-eight-year-old son of Maier Amschel.

" When I settled in London," Nathan Roths-
child continued, " the East India Company
had eight hundred thousand pounds' worth of
gold to sell. I went to the sale and bought it
all. I knew the Duke of Wellington must
have it ; I had bought a great many of his bills
at a discount. The Government sent for me
and said that they must have it. When they
had got it, they did not know how to get it to
Portugal. I undertook all that, and sent it

79

The Romance of the Rothschilds

through France. It was the best business that
I have ever done."

This transaction, on which Nathan Roths-
child looked back with so much satisfaction,
must have taken place after the year 1808. At
that time the Duke of Wellington had to
contend against the greatest calamities in
regard to money. Everything had to be paid
for in cash, and it was only with considerable
loss that he could convert into cash the bills
sent from the Treasury. This made the British
Government anxious to send the money in coin
to the seat of war, but, on account of the con-
tinental blockade and the constant fear of
being captured by the French, the consign-
ments were in great danger. The Government
were not a little obliged when Nathan Roths-
child yielded to them the East India Com-
pany's gold, but he did them a far greater
service in undertaking to send it out at his own
expense and risk. He had his reward, but it
was a bold and masterly undertaking, involv-
ing four different operations : the purchase of
Wellington's bills, the finding of the gold, the
80

The English Rothschilds

sale of it, and the transport of the gold to
Portugal. The fourfold profit richly rewarded
Rothschild for the risk he had run. His
fundamental principle came into play just as
in his purchase of Manchester goods; the
difference was that in one case he was dealing
with manufactured goods and in the other with
extremely delicate State business.

It goes without saying that he only decided
to undertake these matters after mature reflec-
tion. He bought .Wellington's bills because
they were cheap ; probably he got them directly
from the agents, a discounting company that
had the name of " Cab," and consisted of a
Maltese, a Sicilian, and a Spanish group of
bankers. This company exploited the difficult
position of the British Government in the most
shameless way. The most difficult part of
Rothschild's bargain was to convey the gold
through hostile territory to Portugal. He suc-
ceeded in an extraordinary degree, but here we
are without details. We can, however, form
some idea of it from a transaction of the year
1813, when England again wanted to send coin
F 81

The Romance of the Rothschilds

to Wellington. On this occasion Rothschild
worked out a plan which he submitted to the
Chancellor of the Exchequer, Vansittart,
through the chief clerk Herries. At that time
the name of Nathan Rothschild was not well
known in English official circles, but the plan
was so excellently worked out that it was
adopted, on condition of the utmost secrecy.
Rothschild then went to Holland or Germany,
and his agents everywhere, even in Paris,
changed a considerable sum of gold into
smaller French money, which was exported by
these confidential agents without being noticed.
These quantities of French money were then
conveyed by Rothschild, in various consign-
ments and by different routes, so quickly to
Wellington's quarters that he was able to press
on victoriously and pay for everything in cash,
while the allies who were advancing from the
east had the greatest difficulties to overcome in
regard to money. Herries, in his secret report,
warmly praised Rothschild's zeal and ability,
and especially commented on his discretion, as
no one had the least knowledge of the affairs
82

The English Rothschilds

on the Exchange. In this way the Government
was able through him to secure the bills that
had gone to the Netherlands and Frankfort to
the extent of £70x3,000 without lowering the
English rate of exchange. He, Herries, was
convinced that if this had been done only to
the extent of £100,000 through an official of
the Treasury or a continental agent, it would
have caused a sensation and a serious fall of
the rate on the Exchange.

From this time onward the British Govern-
ment entrusted Nathan Rothschild with all its
larger financial operations, so that his business
began to assume an even more imposing char-
acter. First he bought on their behalf two
hundred thousand pounds' worth of bills at
Paris, which were needed to cover the cost of
the journey of Louis XVIII and his corona-
tion. It was soon perceived on the Exchange
what excellent sources of information Roths-
child had in political and financial matters, and
the more imaginative members surrounded him
with quite a halo of legends. As a matter of
fact, the way in which he received information

F2 83

The Romance of the Rothschilds

was not without romance. Amongst other
things he had a very efficient postal service of
carrier-pigeons, and these kept him in constant
touch with Paris and Frankfort. Then he gave
a strict order to the captains of vessels that had
business relations with him to send him the
latest news from all parts, and he rewarded
them generously.

In this way it once happened that a captain
brought him a copy of a Dutch journal
announcing some great victory of the English
troops. Rothschild at once went to the Treasury
and informed Lord Liverpool, without telling
the source of his information. They laughed
at his " good news," as a defeat of the English
had been communicated the day before; but
the accuracy of his information was proved a
few days afterwards, and his reputation was
enhanced.

The Rothschilds rendered great service to
all the European Powers, especially England,
during the "hundred days." When it was
known that Napoleon had returned, Herries at
once turned to Rothschild to provide gold.
84

The English Rothschilds

Acting on the maxim that " necessity knows no
law," Rothschild did not scruple to mint
French money without first involving himself
in lengthy diplomatic correspondence with
Louis XVIII for permission. There was no
time for reflection. Prussia had to contend
with such grave financial difficulties that
Bliicher was compelled, at Namur on May 16,
to clear the bills he had on London on his own
responsibility, with great loss, as Wellington
had done in the same circumstances. The
financial minister, Billow, had gone to London
in the middle of April to press for an advance
of at least £100,000, but Herries was on the
Continent, and nothing could be done without
him. Returning from Brussels to London at
the end of April, he at once paid £200,000
through Rothschild, to the very agreeable
astonishment of Billow, who described the act
as a service of the greatest moment, and
warmly pressed Greuhm, the agent of Prussia,
to keep on good terms with Herries. As it
was now known at Berlin that Nathan Roths-
child had a good deal to do with English

85

The Romance of the Rothschilds

affairs, Billow told Greuhm to take advantage
of his influence on the cabinet. The child of
the Frankfort ghetto had now made such pro-
digious strides that even the powerful Prussian
minister had to reckon with him.

Berlin came into direct relations with the
Rothschilds for the first time when Solomon
personally conveyed the £200,000 to the
Prussian capital. Billow gratefully recognised
the conduct of the brothers, and, when more
money was needed and he was compelled to
address himself to the Rothschilds, Solomon
at once, without waiting to consult his brother
Nathan, let him have £150,000. In the end
Solomon did so much for them that he was
awarded the title of Commercial Councillor by
Prussia.

To what extent English money circulated at
that time, and what part the Rothschilds played
in the business, we learn from two extensive
reports made by Herries in 1816 and 1822.
According to the details which he gives, the
Rothschilds paid nearly £18,000,000 on the

Continent from the spring of 1814 onward, and
86

The English Rothschilds

on much better terms than they had had before.
It was no less a merit on their part that they
paid out these enormous sums without lowering
the value of English securities, and thus saved
the kingdom at least half a million sterling.

" It is possible," said Herries, " that I should
have been unable to make these payments on
the Continent without the assistance of
Rothschild and his brothers. They deserve
the highest praise for the efforts they made in
the public service, and the profit they made
thereby was made honestly and openly."

It is beyond question that Nathan Rothschild
rendered incalculable service to England and
Prussia during the " hundred days." But these
"hundred days," in particular, the day of the
downfall of Napoleon at Waterloo, brought the
sons of the Frankfort ghetto a colossal profit,
whereas a few weeks earlier they were faced
with the prospect of enormous losses. Bona-
parte's unexpected return from Elba had
entirely upset Nathan Rothschild's financial
plans, and at one moment it seemed as if his
house, which many even then regarded as

The Romance of the Rothschilds

indestructible, would hardly be able to survive
this sudden turn in the politics of Europe. His
whole fortune was at stake. He is said to have
hastened anxiously to the Continent, to join
the English army and follow in its footsteps.
When at last it prepared for a decisive battle
at the southern boundary of the forest of
Soigne, Nathan Rothschild, who had hitherto
shrunk from the sight of blood, could no longer
control his impatience. He would not remain
in the rear of the troops, but hurried feverishly
to the field and followed with his own eyes
from some higher ground, with anxious heart
and beating temples, his nerves strained almost
to the pitch of insanity, the great struggle for
the mastery of Europe.

In this terrible battle the fate of Napoleon's
hundred-days' empire was sealed for ever.
And before the defeated Emperor ordered the
last desperate attack, in order, at whatever
loss, to break the enemy's line and force it to
retreat by his guards, Nathan Rothschild turned
his back on the field of battle; he had seen
enough to convince him that Napoleon had
88

The English Rothschilds

fallen. The sight of the dead and the wounded
horrified him no longer. Before his eyes was
the battlefield of the Exchange, and he
hastened into action.

His heart overflowing with joy, he galloped
wildly to Brussels, where, without losing an
instant, he hired a carriage at an exorbitant
charge and raced to Ostend as fast as the
horses could go, in order to sail at once for
England. He reached Ostend safely, but it
then seemed as if all his exertions were thrown
away; a fearful storm raged over the sea, and
there was not a sailor to be found who would
risk his life in such weather.

Rothschild, who lived in perpetual fear of
attempts on his life, did not shrink before this
danger. He was certainly no hero, but at the
present moment he feared nothing. He offered
500, 800, and at last 1000 francs to any man
who would take him through the storm to
England. No one would do it. He was about
to abandon the enterprise when a courageous
sailor came forward and said that he would
take the London Croesus across if he paid 2000

89

The Romance of the Rothschilds

francs in cash to his wife beforehand. If they
both went down, the widow at least would have
something.

Nathan gladly paid the required sum, and,
when he at length set foot on English soil,
made a further generous payment to the brave
skipper. He was half dead when he reached
the English coast, but he could not rest a
moment, and hurried on from Dover to London
by express post. The next morning he was
in his usual place at the Exchange, leaning
against a column. His face was extraordinarily
pale; he was completely exhausted, and stood
with weary eyes and failing knees. He looked
like a man broken in body and soul, as if he
had aged ten years in a single night.

The hall of the Exchange was seething with
excitement, like a hive of bees. The stock-
brokers, usually so cold-blooded, walked about
restlessly, speaking little to each other, every
man shuddering in body and soul as if in
presence of some dread unknown. Dismal
news passed from mouth to mouth. In a low

tone they discussed the defeat of Bliicher, and
90

The English Rothschilds

it was whispered that Napoleon's heavy guard
had beaten Wellington's army. Rumours that
they had no means of checking sufficed at such
a time to make them lose their heads altogether,
and the state of things was made worse by the
lamentable spectacle that Nathan Rothschild
presented. He leaned against his column like
a man who was condemned to death and
seemed hardly able to stand on his feet : the
placid, cold-blooded Caesar, who had never
before lost his balance in the most furious
storms of the financial world.

What they had regarded as idle rumour
seemed now to take the shape of undeniable
truth, for the countenance of Nathan Roths-
child told more than the vague whispers of
the crowd. A fear, amounting to panic, broke
on the entire Exchange like a flash of light-
ning : the passionate and irreconcilable enemy
of England was once more free, and no one
could now restrain him if he chose to fall on
Europe again as the scourge of God.

The fear fell on the city like a devastating
cyclone. The news increased in volume and

91

The Romance of the Rothschilds

terror, and filled men with alarm. A wild panic
ensued. The rate of exchange fell from minute
to minute until it reached its lowest point, and,
when it was seen that both Rothschild and his
agents offered securities for sale in large
quantities, even flung them on the market,
nothing could arrest the disaster. It was as if
a mania had seized the crowd ; in a few minutes
the strongest banks began to waver, and the
value of the most solid securities sank alarm-
ingly, as if they were the images of false gods
which the disillusioned faithful, thirsting for
vengeance, cast from their pedestals and trod
under foot.

Meantime the deathly-pale man at the
column laughed in his sleeve. While sym-
pathetic souls expressed their concern for
Nathan Rothschild, whose great firm, it was
thought, must now sink into the dust, destroyed
by its colossal losses, he was quietly buying up
all the securities offered by means of secret
agents whom no one knew.

The next day came the news that Bliicher

had won at Ligny and Wellington at Waterloo.
92

The English Rothschilds

Rothschild himself told it, with radiant coun-
tenance, at the opening of the Exchange, the
rate advanced rapidly and reached an unpre-
cedented height. In a single day he had
gained nearly a million sterling. It was these
events which gave rise to the saying : " The
allies won the battle of Waterloo, but it was
really Rothschild who won." The great storm
in the financial world had subsided, and Roths-
child emerged from the catastrophe more power-
ful than ever. If the whole story is true it is
doubtful if so romantic and stirring an adven-
ture could be repeated in the modern financial
world, with all its means of communication; in
any case, it would need a Nathan Rothschild.

It was impossible to restore financial rela-
tions to a healthy condition at once after the
battle of Waterloo. National economies could
not recover quickly from the fearful strain that
the war had put on them, and they were again
obliged to borrow; that is to say, to enter a
field in which Nathan Rothschild's genius dis-
played its fullest power, and in which he
almost played the part of providence. This

93

The Romance of the Rothschilds

struggle for millions, demanding, as it did, a
great fighting power, an incredible coolness,
and a firm self-control, offered a wonderful
spectacle to the observer. Here there were
no regiments of dragoons galloping into action,
no firing of guns, no body-guard to fling on
the foe; there were merely two antagonists
confronting each other — the State on the one
side, and a single individual, Nathan Roths-
child, on the other. They had been in
friendly relations, yet they entered into a
struggle, because victory meant a considerable
material gain to the winner.

In Prussia the measures adopted by the
Chancellor Hardenberg and the Minister of
Finance Biilow required a great deal of money,
and, as this was not to be had in the country,
they had to seek it abroad. Barandon, the
commercial representative at London, recom-
mended the Prussian Government in Novem-
ber 1817 to place the loan at London. In his
opinion Nathan Rothschild was the best man
for the purpose, as he could command success
everywhere owing to his universal credit.
94

The English Rothschilds

Barandon at once received orders to negotiate
with him for a loan of £1,250,000, but Roths-
child preferred a State loan of at least
£2,500,000. In this he gave the first indica-
tion that he liked big operations; he had
confidence in his own strength and resources.

They settled the general conditions, accord-
ing to which they adopted the rate of the five
per cent. French stock — namely, 70 per cent.
But as the plans of France, Austria, and
Russia in regard to new State loans were after-
wards published and spoiled the market,
Barandon could only take into consideration,
in his draft of January 13, 1818, an issue at the
rate of 60 per cent., as he informed Harden-
berg. The envoy Humboldt said the same,
though he found the terms exorbitant and
thought that the matter should not be decided
until some attempt was made to obtain better
terms. Humboldt wrote as follows —

"If the loan is to be placed here I think that
it can only be done through Rothschild, other-
wise some other equally large house would
have to be enlisted in our interest, which would

95

The Romance of the Rothschilds

be difficult. Rothschild is now certainly the
most enterprising financier. He is very well
acquainted, through his brothers, with the posi-
tion of the Prussian State, and he is on their
account anxious to serve our court; it would not
be easy to induce another house here to be
equally obliging. The banker Rothschild is
also a reliable man; the present Government
does a good deal of business with him, and
he is, as far as I know him, very honest and
intelligent."

The envoy says in the same letter that Roths-
child wishes to undertake the entire loan him-
self, and desires in future that the Prussian
agent shall not intervene in the matter, as he has
certain objections to him.

The new terms caused quite a storm of ex-
citement at Berlin. However, Hardenberg and
Rother, the director of the Treasury (which
was distinct from the Ministry of Finance),
determined, in opposition to the prevailing view,
to place the loan abroad, and Rother went
to Amsterdam for the purpose. There the
Government refused to consent, as it feared

The English Rothschilds

that there would be some difficulty if it needed
a loan itself. Prussia was, therefore, thrown
back upon the Rothschilds, and Rother went
to Coblentz, where Solomon Rothschild was
at the time. Here again he failed, and the
Berlin bankers — probably impelled by the
Government — at last stirred themselves and
offered their services. They were prepared to
manage a loan of £1,900,000, and it began to
look as if they could dispense with the English
Rothschild. That induced him to offer a rate
of 65 per cent, and raise the amount of the loan
to £3,800,000. A sharp struggle followed, and
public opinion in Prussia was on the side of
the Berlin bankers. The Government, how-
ever, decided to accept the English offer, as it
recognised the doubtful value of the Berlin
scheme, and so Rother proceeded to London
in March 1818 with instructions from Harden-
berg to conclude the loan if he could get a
nominal rate of 70 per cent.

Nathan Rothschild and Rother and Baran-

don discussed the subject for five whole days,

from ten in the morning until six in the even-

G 97

The Romance of the Rothschilds

ing, and then again uninterruptedly from ten
at night until two in the morning. How exact-
ing the work was may be gathered from the fact
that Rother had not time to draw up official
reports and had to be content with notes in
pencil. Although he was pressed from Berlin
to conclude as speedily as possible, he had
opened the negotiations with a declaration that
he could not accept the terms offered and must
ask for better. Rothschild said that in many
respects he was anxious to meet them, and that
he would agree to an average rate of 65 per
cent.; farther than that he would not go, as
even the French funds stood no higher. As
the parties could not come to an agreement,
Rothschild asked Rother to make a counter-
offer in writing, and Rother did so the next
morning. In his draft he assumed a rate of
issue varying between 75, 78, and 80 per cent.
Rothschild pointed out that this was impos-
sible, and said that he must retire from the
affair if Rother persisted in his claims.

Rother had foreseen this and had put the rate
so high in order to draw a good offer from

The English Rothschilds

Rothschild; otherwise he was disposed to let
the matter drop. Now new plans and pro-
posals were discussed until at last Nathan
Rothschild agreed to un'dertake the loan at
70 per cent., if he were guaranteed a commis-
sion of four per cent. To this Rother would
not consent, and after a great deal of fatiguing
discussion they came to terms : with a commis-
sion of four per cent., £2,500,000 should be
issued at 70 per cent., £1,250,000 at 72^, and
£1,250,000 at 75. When he returned home,
however, and tested the figures Rother found
that the State would not quite receive 70 per
cent., and so the next morning he wrote as
follows to Solomon Rothschild, who was in
London helping his brother with the negotia-
tions—

' You know me, and know that I keep my
word in all things. You will therefore believe
me when I say that, whether we do business or
not, I am pleased to be in London and to have
made the acquaintance of your brother, for
whose mind and character I have the greatest
admiration."

G2 99

The Romance of the Rothschilds

He adds that it is impossible for him to
accept the business on the basis of the sug-
gested rate, and goes on to say of his pleni-
potentiary powers—

" I will show you these when we meet, not
as Herr von Rothschild but as my friend ; until
then the Rothschilds can do nothing in the
matter."

To this clever letter Solomon Rothschild
sent the following reply—

' Your Excellency's very pleasant letter has
been delivered to me, and I have put its con-
tents before my brother. We agree to do nothing
until we have the pleasure of seeing you. No
action shall be taken hastily, as here there is
nothing but friendship and candour, and you
must and shall have proof that we speak, not
merely with the lips, but from the heart, when
we say that we are your sincere and devoted
friends. In haste,

" ROTHSCHILD BROTHERS."

Immediately afterwards Rother informed his
100

The English Rothschilds

Government from London that the negotia-
tions had taken a favourable turn—

" The present Rothschild is a very estimable
man and has an enormous influence on the
whole business world here in London. It is
often said, and is almost true, that he dictates
the rate on the Exchange. His position as a
banker is very strong. . . ."

On March 31, about three o'clock in the
morning, just as the day was dawning, the
business was concluded. Nathan Rothschild
agreed to an issue at 70, 72^ and 75 per cent.,
and abandoned his claim of commission, so
that the average rate was 72 per cent. That
very day he shipped a million silver thaler
[£125,000] to Rother at Hamburg, and pro-
mised to send an equal sum at once to Ham-
burg in bills. It was a splendid proof of his
confidence in the Prussian statesman and his
extraordinary dispatch in business. It also
throws a light on the reserve of money which
the Rothschilds always had, seeing that they
were in a position to put a million thaler on
board the moment they came to an agreement.

101

The Romance of the Rothschilds

The money had scarcely reached a Prussian
port when the indefatigable Rothschild
plunged into new business. The dislike of the
English for foreign loans put no slight diffi-
culties in the way of his far-reaching activity.
He had gradually to accustom them to the idea
and make them see the immense importance of
this class of business, until at last London,
which had hitherto been merely the largest
money-centre in Europe, became the emporium
of the markets of the world and began to play
the part that Amsterdam had rilled in the
eighteenth century. Strictly speaking, Nathan
Rothschild was the first banker to negotiate
loans in the modern form.

In all these operations he was singularly
fortunate. No State with which he did busi-
ness ever failed; in cases where one of them
was behindhand in covering the coupons he
always had money enough at his disposal to let
the creditors have their interest out of his own
coffers. As this enabled States to pay punc-
tually always, men began to credit Nathan
RothschUd with a wonderful foresight and to

102

The English Rothschilds

entertain that unreserved confidence which
gave a stamp of infallibility to all his under-
takings.

He extended his transactions to all branches
of stockbroking, buying or selling according
to circumstances. Where he found State
securities which no one had hitherto dreamed
of buying he bought them, as he knew from
experience that he could dispose of them at
a profit when once they had passed into his
hands. He not only advanced mortey to
States, but induced them to exchange one sort
of stock for another, the percentage of which
was less burdensome to them. Here again he
was the first to frame large plans of reduction.

He did not, of course, succeed equally in all
his loans to States; sometimes he sustained
losses which would have ruined other banking
firms. These unpleasant experiences, how-
ever, only made him more prudent, and he
often rejected an offer without a word of ex-
planation when he thought it was not sound
enough. He refused, for instance, every in-
vitation from Spain or from the American

103

The Romance of the Rothschilds

republics which had formerly been un'der
Spanish rule.

He was careful to avoid all unsound busi-
ness, and especially refrained from taking
shares in any of the limited companies of a
questionable character which were then formed
in large numbers. That does not mean to say,
however, that he had no share in the float-
ing of companies. It stands to his credit,
for instance, to have brought into existence
the "Alliance Marine Assurance Company."
Marine insurance was at that time entirely in
the hands of private individuals; they had, it
is true, combined in a large association under
the name of " Lloyd," but did not form a
limited-liability company, as this was not per-
mitted by the laws at that time. Nathan Roths-
child used the whole of his influence to get
the restriction removed; in order, it was said,
to put a relative of his named Gompertz at the
head of the concern. There may have been
some truth is this, although there were many
other ways in which he could have found a
good position for his relative. The chief point
104

The English Rothschilds

in his mind was that Gompertz was an excellent
mathematician, and he regarded this as a
guarantee of the prosperity of the company.
He went to work very energetically to realise
his plan. He turned to the Government, which
was disposed to alter the law relating to limited
companies, and a good deal of intrigue took
place at the House of Commons, where
Lloyd's attempted to oppose Rothschild, but
they were defeated by his intimate friend
Buxton. Even in the Upper House he found
a warm supporter of his plan in Lord Liver-
pool, the Premier, and in the end he won.

This victory confirmed the belief in his irre-
sistible power in England. In point of fact,
his influence was not confined to the European
market, but extended to America, where, on
one occasion, he saved the Brazilian Empire.
It had in 1824 contracted a loan of £3,200,000
sterling with the London firm, Wilson & Co.,
but the terms were so difficult that the Brazilian
plenipotentiaries would not assume responsi-
bility for it. On this account the London house
refused to send any more money after the first

105

The Romance of the Rothschilds

million. This put Brazil in a very critical
situation. Nathan Rothschild then undertook
to pay the remaining £2,200,00x3, although
Brazil was in so insecure a position that it was
soon compelled to discontinue the payment of
the interest. Nathan Rothschild was, however,
not the man to desert one to whom he had lent
a saving hand; he wished to protect it from
calamities. He therefore, in the year 1829,
sent a further £800,000 to Brazil, on condition
that the overdue interest was paid. It was not
an overwhelming sum, but it sufficed to enable
the Brazilians to put their financial affairs in
order.

The quality that exhibits a certain greatness
in Nathan Rothschild was the unwavering
fidelity with which he clung to a system, in spite
of changes in the political situation which
would have compelled most bankers and
financiers to withdraw their capital. The most
astounding developments in the politics of
Europe never diverted him from his purpose;
it almost seemed as if catastrophes were his
proper element.
106

The English Rothschilds

Yet, in spite of the large and cosmopolitan
business of the Rothschild house, none of the
brothers neglected smaller transactions. They
felt that in building a palace limestone was
needed as well as marble. The sale and pur-
chase of securities of all sorts on a small scale
were most conscientiously attended to and the
business of exchange was most carefully main-
tained; in fact, the smaller details of banking
received all the attention that is needed for a
concern to prosper. The discounting-business
assumed enormous proportions, and, although
it did not bring in such large profits as loans,
it had the advantage of a steady income and
of not being exposed to the effects of sudden
events and incalculable chances. Nathan
Rothschild did not hesitate for a moment to
accept bills from any part of the world, whether
they were from Moscow, Rome, Bombay, or
New York. He had a curious power of telling
at first sight if a signature was forged, even if
he had seen the genuine signature only once.
His memory was so good that, in spite of the
mountain of offers, plans, and requests that

107

The Romance of the Rothschilds

always awaited him on his return from the
Exchange, he could dictate the prices to his
secretaries and clerks quite accurately without
having taken any note of them.

In describing his character we should notice
the confidence with which he handled securities
which other bankers had rejected. Many a
merchant in such cases was assisted by him,
and he never suffered any material loss in this
way; which shows at once the justice of his
principle and the unwillingness of men to
abuse his confidence. He had no intention of
giving alms, but knew that money and credit
can restore the small trader to his position, and
he was pleased to give the opportunity to small
traders. There was a strong dose of humanity
in his business-ideas.

In October 1816 the Emperor of Austria, at
the suggestion of the financial minister at the
time, Count Stadion, rewarded the merits of
the Rothschild brothers with a diploma of
nobility. Curiously enough, Nathan, who had
been the soul of the negotiations in regard to
the English subsidies, was not included in this
1 08

The English Rothschilds

honour, but in 1822 he and the other brothers
received the title of baron. He never made
public use of this title or wore the decorations
which he received from nearly every ruler in
Europe. He remained a simple Rothschild;
in spite of its modesty, he found the name im-
posing enough, since it compelled admiration
throughout the civilised world. His operations
were known to have always the character of
immensity, as Carl Gutzkow justly says in a
fine paragraph—

" Nathan Rothschild fitly represents the
calmness and power of the city of London.
He approaches his undertakings with the hand
of a giant. Everything in him is gigantic. Not
long ago one of my friends said of him : ' When
this man goes hunting, the beast must be at
least an elephant.' '

The banking-house of Nathan Rothschild
had indeed reached a stage of greatness and
power that had never been attained by any
other business-house on earth. Even his
brothers could not compete with him, and the
Bank of England often relied on his assistance

109

The Romance of the Rothschilds

and good-will. This happened particularly
in the fateful year 1825, at the time of the
financial crisis, when not only did the most
solid firms waver and the weaker fell like
houses of cards, but this splendid institution,
the pride of the English people, the impreg-
nable Bastille of the money-trade, was nearly
compelled to suspend payment. It is impos-
sible to estimate the extent of the calamity
which this would have entailed — how many
thousands of lives would have been ruined and
what the consequences would have been for the
whole future of the English financial world, if
Nathan Rothschild had not appeared on the
scene as an angel of deliverance. There was
something of the genius, something titanic,
about him. The rapidity with which he
summed up a situation and utilised the oppor-
tunity or came to the assistance of those in
danger, was one of the leading features of his
character. According to Sir Thomas Powell
Buxton not only rapid decision was one of the
chief elements in Rothschild's business capa-
city, but there was also something that savoured
no

The English Rothschilds

of superstition, as Buxton proceeds to illus-
trate—

" Another maxim, on which he seemed to
place great reliance, was never to have any-
thing to do with an unlucky place or an unlucky
man. 'I have seen/ said he, ' many very clever
men who had not shoes to their feeU I never
act with them. Their advice sounds very well,
but fate is against them. They cannot get on
themselves; if they cannot do good to them-
selves, how can they do good to me ? '

The same authority tells us another trait of
Rothschild's character in these words—

" One of his guests once said to Rothschild :
' I hope your children are not too fond of
money and business, to the exclusion of more
important things. I am sure you would not
wish that.' Rothschild answered : * I am sure
I should wish that. I wish them to give mind,
and soul, and heart, and body, and everything
to business; that is the way to be happy. It
requires a great deal of boldness, and a great
deal of caution, to make a great fortune; and,
when you have got it, it requires ten times as

in

The Romance of the Rothschilds

much wit to keep it. If I were to listen to all
the projects proposed to me, I should ruin
myself very soon. Stick to one business,
young man,' said he to Edward ; ' stick to your
brewery, and you may be the great brewer of
London. Be a brewer, and a banker, and a
merchant, and a manufacturer, and you will
soon be in the Gazette? '

This conversation shows the cast of mind of
Nathan Rothschild, of which a contemporary
says—

" Here is the key to the character of Nathan
Rothschild. His ambition was directed to the
carrying out of well-conceived financial opera-
tions, to money-making, if you want to express
it in those terms; but the emphasis must be on
the word ' making.' Money and the things that
money buys had little value in themselves for
him. He had little feeling for what every
Englishman looks forward to securing when
he has money enough — for ' comfort,' in the
widest sense of the word. His ambition was
to attain his object in business more speedily
and effectively than others, to strive for it with

112

The English Rothschilds

all his might. When he had attained his object,
the thing lost its attractions for him, and his
restless mind turned to others."

As a matter of fact, the pursuit of any aim,
whether it be in art, politics, or business, de-
mands above all things a concentration of one's
forces on a single point; concentration is the
characteristic of genius. The Rothschilds con-
centrated all their powers on money-making,
and this was always the mainspring of action
in the whole dynasty. Bismarck, who knew
the character of the Rothschilds, noticed this,
and said in 1879—

" I have known a good many members of
this house. What strikes one in all of them
is the hunt for money. That, however, is due
to the fact that each of them is always anxious
to leave to each of his children as much as he
himself inherited, and that is nonsense."

The unceasing struggle for money left
Nathan Rothschild no time to live his own
life. His time, thoughts, and feelings were
devoted exclusively to his profession. To a
friend who asked him in joke how much time

H 113

The Romance of the Rothschilds

he had for music, he replied, jingling the
money in his pocket : " That is the musical
instrument on which I play best." His motto
was, " Business." He took the greatest pre-
cautions to guard the secrecy with which he
surrounded his operations. He went to work
with such stealthiness that his sales and pur-
chases were often misunderstood by his col-
leagues, and this sometimes exposed them to
no inconsiderable risk. To attempt to follow
his example was very bold, as his transactions
were carried out with so much ability and craft
that no one attempted a second time to imitate
him.

At that time he lived some distance from the
city, at Stamford Hill, where he had his offices.
One day, late in the evening, a wealthy and
well-known stockbroker named Lucas noticed
that his carriage was waiting for him in front
of the house. Lucas, who would very much
like to find out Rothschild's plans, suspected
something; he said to himself that there must
be some serious reason for driving out at that

late hour. He ordered his own carriage at
114

The English Rothschilds

once, and watched if Rothschild really left the
house. After a time he saw Rothschild, ac-
companied by two friends, and heard him call
to the coachman before he joined them in the
carriage —

" Drive to the city ! "

Lucas had now no doubt that there was
question of some business of importance. He
jumped into his carriage and followed Roths-
child, who made at a gallop for New Court, his
town residence. A few moments later Lucas,
apparently drunk, staggered through the door-
way, and, in spite of the protests of the servants,
entered Rothschild's study, where he fell to the
ground like a heavy sack. Rothschild and his
friends, not a little disturbed by this unexpected
visit, sprang upon the apparently unconscious
man, lifted him on to the couch, sprinkled him
with cold water and perfume, and rubbed his
limbs to bring the blood back to them. It was
all in vain ; and, as the conversation which had
been interrupted by the appearance of Lucas
was extremely important, and the quiet and

regular breathing of the man seemed to show
H2 115

The Romance of the Rothschilds

that he had fallen into a healthy sleep, they
continued the discussion. It was a matter of
great urgency, as important news had come
from Spain and provided an opening for some
good business, if they could buy up certain
stock at once without attracting attention.
They drew up a plan of campaign and went
their various ways, intending to enter upon the
business on the following morning. They did
not, of course, forget the sick man, and Roths-
child told the servants to take him home as soon
as he recovered.

There was no need to do this. As soon as
Rothschild had gone, Lucas left the house, in
spite of the clamour of the servants, though
he still seemed to be very weak, and his gait
was uncertain and staggering. He had, of
course, no idea of returning home; he hurried
to his office, and made arrangements to snatch
up the stock in question before Rothschild
could get them. He completely succeeded,
and made an enormous profit. It was the last
time that Rothschild sprinkled Lucas's fore-
head with perfume.
116

The English Rothschilds

But how many sleepless nights the prince of
London finance must have sacrificed to Mam-
mon ! In spite of all the earthly goods at his
command, he was by no means a happy man.
Sir Thomas Buxton, who often visited him in
his splendidly furnished house, once said to
him, " You must be a very happy man ; how
could any one be otherwise than happy in such
a house as this ? "

" I happy ! " Rothschild exclaimed, his voice
poignant with sadness. " How could I be
when, worn out with the day's work, I go to
dinner and find letters saying, ' If you do not
send me £500, I will blow your brains out.' I
get letters like that every hour."

Threatening letters reached him from every
part of the world and embittered his life ; they
made him nervous, and threw him into a kind
of terror that bordered on insanity. In his later
years he never went to bed without putting a
loaded pistol under his pillow. He lived in
hourly dread of attempts on his life, and saw a
would-be assassin in every stranger. It often
put him in a most unpleasant situation.

117

The Romance of the Rothschilds

One peculiar experience was with two men
who came to visit him. Rothschild greeted
them with a slight inclination of the head, which
the visitors met with a profound bow, without
any of them saying a single word. Instead of
speaking they felt nervously in their pockets,
as if to extract something. Rothschild became
as pale as death. On that very morning he had
received a number of threatening letters, and he
thought that his visitors were assassins. His
face was tense, and he swiftly seized a large
book and flung it at the men. With desperate
energy he laid hold of everything within reach
and threw it at them, shouting for help at the
top of his voice. His servants rushed in, and
it was found that the visitors were small bankers
who had been struck dumb in presence of the
great prince of finance. The feeling that they
were actually face to face with Nathan Roths-
child, on whom their fate depended, had so
overcome them that they were not only unable
to speak, but could not find the letter of
introduction to him which they had in their
pockets.
118

The English Rothschilds

Even in the exercise of philanthropy Nathan
Rothschild betrayed some nervousness ; he was
troubled by the thought that people would make
a bad use of his gifts. It was so, as a matter
of fact. It was in vain that he gave freely and
generously. It was all too little for the world,
which spoke of him as miserly, and this unjust
verdict disturbed the harmony of his nature.
There were people who laughed at him, and
said that he hated beneficence so much that
he preferred sleepless nights from his utter
detestation of " beneficent " sleep.

A number of these mocking aphorisms on
Rothschild survive, and it is quite possible that
his works of charity did not always spring from
an intimate feeling of sympathy with the suffer-
ing, as he once said, somewhat cynically, to his
friend Buxton —

" Sometimes, to amuse myself, I give a beggar
a guinea. He thinks I have made a mistake,
and, for fear I should find it out, off he runs as
hard as he can. I advise you to give a beggar
a guinea sometimes; it is very amusing."

It is difficult to say whether there was not

119

The Romance of the Rothschilds

more pose than virtue in this attitude. It is a
fact, at all events, that he was always in a hurry
to get such matters over. Hence, when a
deputation of philanthropic people visited him,
and started to make a lengthy and solemn
appeal to his heart, he promptly interrupted the
speaker, without any intention of hurting his
feelings, and cried to his secretary, " Make out
a cheque."

This impatience was quite intelligible, and
people did not take it amiss. There were
thousands of plans in his mind, and he ought
not to lose sight of them. How was it possible
for him to entertain the innumerable fantastic
schemes to which many of his co-religionists
thought that he ought to devote his fortune?
It was no light matter in the circumstances to
v listen patiently, with the amiable features of a
philanthropist, to all their tirades, as if the
great financier had nothing else to do but meet
the requirements of every one who approached
him. It is quite true that Nathan was not of
so generous a nature as his father had been;

and in consequence of this he did not take the
120

The English Rothschilds

same pleasure in acts of chanty as his father
had done.

Sometimes Nathan Rothschild was in such a
hurry that he failed to recognise the character
of his visitor. It happened, for instance, one
day that he handed half-a-crown to a poor Jew
who stood before his desk in silence.

" What ! " said the Jew. " Don't you recog-
nise me? I am Mayer Jeremias."

" I don't remember you," Nathan murmured
nervously.

The aged Jew became very grave at this, and
muttered to himself, " He doesn't know me,
he doesn't know me, poor man. In three
days he will be dead."

He went away, and the financier, greatly
alarmed at the curse, hastily called his secretary,
saying to himself, " I wa§ to die in three days,
did he say?"

" Did you see that man ? " he asked the clerk
when he came.

" Yes."

" Call him back at once ! Bring him here
immediately ! "

121

The Romance of the Rothschilds

In ten minutes the elderly Jew was again in
Rothschild's room.

" You said," Rothschild exclaimed to him,
" that I should die within three days. Why did
you say that ? I did not send you away empty-
handed."

" No," answered the aged Jew quietly; "you
gave me half-a-crown."

"Well?"

" But you did not recognise me, and so I
cannot talk to you. Yet we were once on a
footing of equality. I was a friend of yours
at Manchester. You went to London; I went
to ruin; and you do not know me, now that I
am a poor man. You have forgotten the poor
man who was once your friend. . . ."

" And was it simply for that you said I should
die within three days?"

' Yes and no. When I was reduced to beg-
gary, I went to America. There I became a
muleteer, domestic servant, labourer, and at
one time nurse in a hospital."

" Well ? " Rothschild interrupted impatiently.

"And in that hospital I noticed something.
122

The English Rothschilds

When a patient failed to recognise his friends
and relatives, the doctor used to say : ' That
man will be dead within three days.' Well,
you did not recognise me, your old friend, and
so I repeated those words. I did not mean
them for a curse."

Nathan Rothschild laughed when he heard
the explanation. He again became the friend
of Mayer Jeremias ; he placed him in his office,
and Jeremias became one of his best agents.

In the course of business Nathan had, as a
rule, a wonderful control of his nerves ; in fact,
he was complete master of his organism, though
his nerves were profoundly affected by the
enormous amount of work hejmposed on them.
Once, when he was ill in bed, and an operation
had to be performed by the famous surgeon
Listen, he bore it without a murmur. After
the operation Rothschild said to Listen —

" Now, I suppose, you expect me to pay you
for the pain you have given me? There you
are mistaken. I will pay you nothing — but
ask you to accept this little memento."

With these words he handed the surgeon a

123

The Romance of the Rothschilds

night-cap. Listen knew the peculiarities of his
patient, quietly accepted the cap, and put it in
his pocket. As he was engaged the whole day
going from one patient to another, he forgot
the singular gift of the Croesus of London. It
was not until he returned home in the evening
that he remembered it, and he then took out the
cap in order to put it on his desk as a reminder
of the eccentric millionaire. As he handled it,
however, he heard a rustling sound, and, when
he examined it, he found in it a bank-note for
£1000. Rothschild used to love jokes of this
kind, which turned to the profit of his victim.

He rarely made witty remarks. His humour
was rather of a sarcastic or ironical nature, and
was only vented, as a rule, when his self-esteem
was hurt. He never used the title of baron,
which he had received from the Austrian
Emperor, because he considered the name
Rothschild superior to all distinctions. But
when others boasted of their rank or spoke of
their ancient lineage, his pride stirred and he
shot his barbs pitilessly at his opponent. The

Duke of Montmorency, who descended from
124

The English Rothschilds

a very ancient stock of nobles, once said to him
that his family had borne the title of "first
baron of France " since the fourteenth century,
and were therefore the first Christian barons.
Rothschild's eye kindled, and he replied —

"We are quits then. You are the first
Christian baron in France, and I am the first
Jewish baron in England."

His pride in his success was sometimes ex-
pressed in a way that was painful to others.
The Bank of England, which he had saved
from bankruptcy in the financial crisis of 1825,
once hurt his feelings very severely. He is said
to have sent to it for payment a bill for a large
amount which he had received from his brother
Anselm. But the Bank of England refused to
pay on the ground that it only cashed its own
notes, not those of private individuals.

" So — private individuals ! "exclaimed Roths-
child angrily. " I will let them see what kind
of private individuals the Rothschilds are."

He took a heavy revenge, if we may believe
a story which has been frequently told. The
best weapon in the hand of a Rothschild is

125

The Romance of the Rothschilds

money, and he ordered his agents to secure as
many Bank of England notes as they possibly
could. For three weeks they continued to
collect them, then, when the Bank opened
one morning, Nathan Rothschild stood at the
counter. He took a five-pound note from
his swollen purse, and asked the chief cashier,
with freezing politeness, to give him gold for
it. It was given with equal politeness, the
cashier restraining his astonishment that the
great financier should waste his time in such
trifles. Nathan Rothschild carefully examined
each sovereign and put it in a leather sack.
Then he calmly produced a second five-pound
note, and repeated his action a second, third,
fourth, fifth, and tenth time, in every detail.
He continued to change notes until the hour of
closing, and in a single day had lessened the
gold-reserve of the Bank by £210,000. While
Nathan himself "operated" at the chief coun-
ter, nine of his clerks were busy changing paper
into gold at the other counters.

Everybody now understood the manoeuvre,
and laughed at the original means that Roths-
126

The English Rothschilds

child had adopted to punish the Bank; they
saw that he was in a position to restrict the
circulation of gold, and the great institution was
quite powerless to resist him. The whole city
— except the directors of the Bank — was
amused. If the directors were at first dis-
posed to laugh, they soon changed their mind,
for Nathan Rothschild was at his post again the
next morning, with his band of clerks, ready
to continue changing notes. The manager
hurriedly went to him and asked why he was
annoying the Bank in this way. He smiled
grimly, and said —

' You said that you were not prepared to
change my bills. It seems that you have no
confidence in them. Well, if you entertain a
doubt about me, I am free to entertain one
about you. I am determined to demand gold
for every one of your notes. I began yesterday,
and I give you notice that I shall keep your
cashier busy changing notes for at least two
months."

Two months! If Rothschild persisted in
his work for that length of time, he would take

127

The Romance of the Rothschilds

at least eleven million pounds out of the Bank's
gold-reserve. That would not do at all. A
meeting of the directors was called at once,
and it was decided to send an apology to
Nathan Rothschild, together with an assurance
that the Bank of England would always be
pleased to cash his bills, whatever kind they
were.

These petty, but not insignificant, episodes
show us the character of the London financier.
He was often misjudged by his contemporaries,
as we see in the following candid description,
which shows the impression that he gave on the
Exchange.

' There is a rigidity and tension in his
features that would make you fancy, if you did
not see that it was not so, that some one was
pinching him behind, and that he was either
afraid or ashamed to say so. Eyes are usually
denominated the windows of the soul ; but here
you would conclude that the windows are false
ones, or that there was no soul to look out of
them. There comes not one pencil of light
from the interior, neither is there one scintilla-
128

The English Rothschilds

tion of that which comes from without reflected
in any direction. The whole puts you in mind
of a skin to let, and you wonder why it stands
upright without at least something in it. By-
and-by another figure comes up to it. It then
steps two paces aside, and the most inquisitive
glance that you ever saw, and a glance more in-
quisitive than you would ever have thought of,
is drawn out of the erstwhile fixed and leaden
eye, as if one were drawing a sword from its
scabbard. The visiting figure, which has the
appearance of coming by accident, and not by
design, stops but a second or two, in the course
of which looks are exchanged which, though
you cannot translate, you feel must be of most
important meaning. After these the eyes are
sheathed up again, and the figure resumes its
stony posture. During the morning numbers
of visitors come, all of whom meet with a similar
reception and vanish in a similar manner; and,
last of all, the figure itself vanishes, leaving you
utterly at a loss as to what can be its nature and
functions."

And one day the mysterious figure dis-
i 129

The Romance of the Rothschilds

appeared for ever from the Exchange. Nathan
died in his fifty-ninth year, leaving behind four
sons and three daughters.

He had married the eldest daughter to
Anselm, the son of his eldest brother Solomon,
of Vienna, in order to knit more closely the
bonds of the family as old Maier Amschel had
bade them. He would also have been pleased
to see his eldest son Lionel marry within the
family, but he did not live to see it. He loved
London, but his heart was also drawn to his
native city, Frankfort, which he visited as often
as he could. In the spring of 1836 he once
more went there, perhaps to refresh the
memories of his youth, perhaps to die there.
There were also family reasons for the journey;
Lionel was to marry Charlotte, the daughter
of Karl Rothschild of Naples, at Frankfort.
When Nathan reached Frankfort, however, his
illness increased, and he was destined never
again to see London, the theatre of his struggles
and victories. Travers, the famous English
physician, was hastily summoned to his bedside,
but it was too late to save him. He died on
130

The English Rothschilds

July 28, at Frankfort, the first really great
Croesus of modern times. His pigeon-post
took the news of his death to England in the
words : " II est mort."

He was buried at London, in accordance with
his last instructions. His funeral was attended
by the Lord Mayor and Sheriffs, many of the
English nobility, and the Russian, Prussian,
Austrian, Portuguese and Neapolitan ambas-
sadors. He was laid to rest in the cemetery
at Duke's Place, belonging to the German
synagogue.

Thus the London house of the Rothschilds
lost its founder, but the mighty organism could
not interrupt the course of its life; it needed
only a new controller. Nathan left four sons.
The youngest, Maier, was only eighteen years
old; the third, Nathaniel, had already attained
his majority; Antony was twenty-six, and the
eldest, Lionel, in his twenty-eighth year. As
the latter had considerable business ability, and
had taken part in the management of the firm
during the lifetime of his father, and was
acquainted with the whole network of their
12 131

The Romance of the Rothschilds

connections, he took over the reins. Being a
man of large views, he initiated very extensive
operations, and introduced new ideas into the
politics of business. As he had a great talent
for organisation and an immense faculty for
work, he never needed the assistance of his
brothers. He worked and struggled to get
further millions, while his brothers could
peacefully follow their inclinations and dis-
tractions.

Antony and Maierwere fond of sport. They
were both members of the London Jockey Club
and were much esteemed in that circle. The
Rothschild colours won many a victory on the
turf through their efforts; once they won two
prizes in one race. As far as the business was
concerned, they remained in the background,
as the energetic Lionel could not endure a com-
panion in his labours. He lived beyond the
biblical span of life, and, even after the death
of his brothers, continued to work with uninter-
rupted vigour.

The third-youngest brother, Nathaniel, had
certain physical defects which prevented him
132

The English Rothschilds

from taking any part in the business. He was
paralytic, and lost his sight in his later years.
He migrated to Paris, where, in spite of his
malady, he followed the course of events with
the keenest interest. Ill and unfortunate as he
was, condemned for life to a chair, he paid the
closest attention, not only to political events,
but to science, art, and the social life of Paris.
He was a collector of pictures; his blindness
prevented him from appreciating them, but he
bought them in order to give support to the
artists and stimulate them to fresh efforts. He
had the subject, the design, and the colouring
of each picture explained to him, and when any
one expressed his surprise that he was inter-
ested in things which he could not see, he
answered in his gentle way—

"Oh, eyes are not at all so necessary for
seeing. Words can paint just as well as the
brush, and a man often sees better with the eye
of the spirit than with the bodily eye."

In spite of his misfortunes and his incurable
illness — a French poet once described him as
"Job on a money-bag " —he led a very peaceful

133

The Romance of the Rothschilds

life, and was never heard to make a complaint.
He bore his hard fate quietly, and found some
alleviation of his sufferings in helping others.

While the blind brother thus enjoyed the
spiritual beauties of pictures, and Maier and
Antony followed their enthusiasm for horses,
Lionel worked and increased the Rothschild
millions. Nathan had educated his sons very
carefully, and Lionel had studied at Gottingen
University, and only entered the business when
his studies were completed. He took up the
work of his father with all the fresh energy of
youth, and always retained a deep respect for
the older man. He in turn was convinced of
the importance and advantage of State-loans,
and under his direction the London house
conducted no less than eighteen operations
of this character; in these transactions nearly
£200,000,000 passed through his hands to
various governments in Europe and America.
To this enormous sum must be added £4,000,000
which Lionel advanced to the British Govern-
ment in the year 1875, when it took over the
Suez Canal shares from the Khedive Ismail.
134

The English Rothschilds

In spite of his exacting business activity,
Lionel Rothschild devoted a great deal more
time than his father had done to social life, in
which he might justly have claimed a high
position. In the year 1847 ne was elected to
represent the City in Parliament. It was some
time, however, before he could carry out the
mandate entrusted to him, as the political con-
dition in England and his creed prevented him.
At that time members of Parliament had to
take an oath which included a profession of
belief in "the true Christian faith." Lionel
Rothschild, being an orthodox Jew, refused to
swear on the Gospels, and asked them to sub-
stitute the Old Testament. As he was not
allowed to do this, he relinquished the seat ; he
was, however, elected again two years later and
had to confront the same obstacle, but at last,
in the year 1858, the form of the oath was
changed. He was elected a fourth time by the
City, and was now able to enter Parliament.
Besides this dignity he received the title of
Consul-General of the Austro-Hungarian
monarchy, which his father had had. His

135

The Romance of the Rothschilds

family occupied an important position in the
social life of London and was on very
good terms with the English nobility. The
Prince of Wales, afterwards Edward VII,
was on very friendly terms with the grand-
son of the candidate for the rabbinate at
Frankfort.

Baron Lionel had five children — two
daughters and three sons. The daughters,
Leonora and Eveline, married members of their
own family; the first became the wife of
Alphonse Maier, of Paris, and the second of
Ferdinand Rothschild, of Vienna. His son
Nathan was married to Emma, daughter of
Baron Charles de Rothschild of Frankfort, and
Leopold took to wife the daughter of the
banker Perugia, of Trieste. Alfred remained
a bachelor.

Baron Lionel had a much better balanced
nature than that of his father. He had not
merely some sense of humour, but was himself
a witty and brilliant man, though his sayings
were usually connected with business life. He
remained at the head of the London house for

136

The English Rothschilds

nearly half-a-century, and died on June 5,
1879, in his seventy-first year, leaving the
throne of the financial dynasty in England to
his eldest son Nathan. At that time the for-
tune of the London Rothschilds is said to have
amounted to more than a hundred million
sterling.

Nathan, the second of that name, was even
more fortunate than his father in regard to
titles; he is an hereditary baronet and a peer
since 1885. Just as his father, Lionel, was the
first Jewish member of the British Parliament,
Nathan was the first Jew to enter the House
of Lords, and he has much the same character
for business as his grandfather. He gives
the closest attention to it; the whole City
looks to him for hints, and he manages his
agents with the same ability as his great pre-
decessor who laid the foundation of the house.
A number of agents come to his desk early in
the morning to receive his instructions, and it
is said that no one goes near him of whom he
has not asked a question or to whom he has
not some instruction to give. However im-

137

The Romance of the Rothschilds

portant the business may be, he never gives
any one more time than is necessary. Swithin's
Lane is not a place for long conversations,
as a rule. Nathan had disliked such things,
and his example is followed by his grandson,
and by Lord Rothschild's brothers, Leopold
and Alfred, who share the work with him
in order that the vast machinery may not be
a moment idle. In the middle of the lofty
room in which the brothers Rothschild work
together there are two desks, with a third at
one side. At the central desk sits an elderly
gentleman with piercing eye and short white
beard : that is Lord Rothschild. Opposite him
is his younger brother Leopold, who is nearly
sixty-eight years old, and just as active as his
seventy-two-year-old brother. At the side desk
sits Alfred, who is interested in science and art
as well as in commercial matters.

Here, in Swithin's Lane, is still the cradle
of State-loans. The financial position of many
a State still depends on the London house of
the Rothschilds. Here the great campaigns
are worked out, and from this lofty chamber
138

/•Vow

LORD ROTHSCHILD.

f>\' f-'lliult t~ /•"» \ .

The English Rothschilds

are directed operations which are felt all over
the globe.

On the wall of the modest gabled house in
a narrow street, which represents the residence
of the Rothschilds, one may still see the old
sign of the firm, which the founder of the
London branch had nailed there—

"N. M. ROTHSCHILD & SONS."
It is as if the Frankfort ancestor still kept
watch, to see that his three descendants at the
three desks in the lofty room did their duty
in turn.

139

IV

BARON JAMES ROTHSCHILD

THE founder of the great financial dynasty,
the aged Maier Amschel Rothschild, still lived
in the narrow Jew Street of the Frankfort
ghetto when the youngest of his five sons set
out to earn his fortune. The young Roths-
childs had not to set out on their travels as
Jewish youths so often did at that time, or as
the older Amschel had done, when, literally,
he walked, staff in hand and wallet on his back,
to Hanover. The sons had no need to face the
world on foot; there were coaches at their dis-
posal, and they did not leave the paternal
house to seek a modest living somewhere or
other, but with a definite goal before their eyes.
They were to establish more or less independ-
ent filial banks of the Frankfort parent-house
in the great capitals of Europe. The white-
haired Maier Amschel, in the Frankfort Jew
140

Baron James Rothschild

Street, had divided Europe amongst his sons,
and the sons went forth to occupy their thrones
and consolidate their power. The eldest,
Nathan, won success and fame at London,
where he augmented the fortune of the Roths-
childs day by day. The third son, Karl
Rothschild, had the great task of regula-
ting the finances of the Pope in distant Italy.
Solomon, the second son, pitched his tent at
Vienna, and became the master of the Ex-
change in that imperial city. The eldest son,
Anselm, received his father's heritage, the con-
trol of the parent-house at Frankfort; and the
subjugation of Paris was entrusted to the
youngest of the Rothschilds, James.

James Rothschild had an easier task at Paris
than his father had had at Frankfort. When
the Benjamin of the family reached the metro-
polis of France the name of Rothschild, for
which Maier Amschel had won respect through-
out Europe, was a sufficient letter of recom-
mendation. There was already in the name
the magic ring, the soft melody, of gold. It
already stood for money, financial power,

141

The Romance of the Rothschilds

colossal wealth, mountains and rivers of gold.
The money of which it was the symbol was not
the buried treasure of a Darius, but the money
that works, struggles, and increases, the money
that sheds blessings and has an influence
wherever it appears, the money that promotes
the prosperity of commercial and economic life.

It was in the year 1812 that James, the
youngest son of Maier Amschel, settled at
Paris. The metropolis of France was as much
under the influence of the Rothschilds as any
other city, but James, who was still very young,
did not embark on any large enterprises. His
first work was to study the place in which he
trusted to do great things. He must first learn
the surroundings and the people with whom he
would have to deal ; like a general finding out
the weaknesses of his opponents.

At first James Rothschild, who was barely
twenty years old, was merely the agent of his
brother Nathan at London; he had to work
very quietly, doing his share in the payment
of the English subsidies to the allies. As long

as Napoleon remained in power the Roths-
142

Baron James Rothschild

childs could not openly undertake any opera-
tions of importance in France. Nathan, the
head of the London house, who was the brain
of the family and had a great influence on his
brothers, wished to be convinced of the serious
interest of his younger brother in business
before he set him to do important work. In
the year 1817 he felt that the time had come,
and, together with James, he founded the Paris
firm under the name of " Rothschild Freres."

The new Parisian banking-house was not
long content with small transactions. James
knew from the conduct of his father and
brothers that small business was not the busi-
ness of the Rothschilds. It was not necessary
for him to do the laborious work of laying the
foundations of the firm, as other bankers
needed to do, in order to secure credit and
capital for large transactions. He entered the
Parisian arena of financial struggle with a com-
plete material equipment for his work, and
regarded the negotiation of State-loans as the
chief branch of business for his house. That
was the field in which his father and brothers

The Romance of the Rothschilds

had won their greatest successes, and he in turn
would try his fortune in it. He therefore con-
centrated his forces on State-loans and the
Exchange, and looked to them for his greatest
successes. He anxiously awaited a favourable
opportunity, and prepared with great care for
his first campaign, so that he might prove his
business ability on the Exchange and win
repute and authority at once in the markets of
the world for the young Parisian firm.

His opportunity came in the year 1824. In
that year the French minister of finance, the
Marquis Villele, put forward a project of
converting an older five per cent. State-loan
into a three per cent. The conversion took
place at the beginning of May 1825 with the
co-operation of James Rothschild, after long
financial struggles ; it took the form of a thirty-
million francs rente, that is to say, on the basis
of a capital of a thousand million francs. An-
other five per cent. French loan, amounting
to 47,727,000 francs, was at the same time con-
verted into a three per cent. In order to be in
a position to carry out this change the Roths-
144

Baron James Rothschild

child house was permitted by the Government
to issue certificates "to bearer," which the
director of the Treasury attested in the name
of the Rothschild house. In this, therefore, it
acted as creditor of the Treasury ; this was the
first State-loan which the still youthful James
negotiated.

This loan was soon followed by another.
This was the four per cent, loan which the
French Government needed in 1828 for
military purposes and for the support of the
Greeks in their war against the Turks. It
amounted to eighty million francs, and was
knocked down to the Rothschilds, who were
the highest bidders, at the rate of 102 '7^.

James Rothschild was then, and had
been since 1822, Consul-General of the Austro-
Hungarian monarchy, and in the same year he
became a baron together with his brothers. In
his sentiments he remained just as conservative
as his brothers, as the house owed its prosperity
precisely to its conservatism, but Baron James
departed from the family tradition in external
matters. He was now something more than a
K 145

The Romance of the Rothschilds

son of the Frankfort ghetto; he was a baron,
and lived accordingly. His handsome palace,
in the Renaissance style, at number 40 in the
Rue Lafitte, was known as "the Versailles of
the absolute monarch of the financial world,"
and Baron James surpassed the wealthiest
members of the higher French nobility in dis-
play. His money was, of course, the basis of
his power, and everybody in France at the time
did reverence to it — except the Prince of
Orleans.

Even in the royal family the Prince of
Orleans was the only one who refused to bow
to the new financial potentate, who dimmed
the splendour of the old French nobles, and
to whom every salon of distinction, except his,
was open. By the year 1841 the Parisian
Rothschild enjoyed a recognised power, yet he
could not succeed in getting admission to the
brilliant festivities with which the Prince of
Orleans entertained the higher nobility at
Chantilly. In the eyes of the prince Baron
James was, in spite of his title, no more than a
Jewish parvenu, who, in his opinion, had no
146

Baron James Rothschild

business to be found in the festive gatherings
of French nobles.

When the prince died there was not a single
salon in the highest society of Paris that did not
willingly open its doors to the "great baron
of finance"; even the conservative Prince
Nemours sometimes received Baron James at
his table. James had obtained a firm foothold
at Paris, and was a power with which every-
body had to reckon.

Prince Metternich, in a confidential letter to
the Austrian ambassador at Paris, Count Ap-
ponyi, described the power of the Rothschilds
in the following words : " The house of the
Rothschilds plays a much more important part
in France than any foreign Government, ex-
cept, perhaps, the English. There are very
natural reasons for this, though I do not think
them good, and still less regard them as
morally satisfactory; in France money is the
mainspring. People count quite openly on
corruption, practically the most important
element of the modern representative system."

Baron James did not scruple to make use of

K2

The Romance of the Rothschilds

corruption in France; he gave bribes and
bought people, as was then the custom in
France. It was not his fault, but that of
France, where bribes had been given long
before the time of James Rothschild. He
merely adapted himself to the prevailing
customs, and increased his power by giving
bribes.

His power is well illustrated by a remark of
Heinrich Heine, who often mentions James
Rothschild in his account of events in France
at the time —

' The king will not pay the pension of the
Prince Nemours, for the very good reason that
he has not the money to pay. His civil list is
loaded with appalling sums ; according to what
a banker told me yesterday, his debts amount
to more than twenty million francs. On
account of this scarcity of money Rothschild
is treated with the greatest consideration by the
French court. A few centuries ago the King
of France would simply have had his teeth
pulled out in order to compel him to advance

money. But the naive ethic of the Middle
148

Baron James Rothschild

Ages was swept away by the storms of the
Revolution, and Rothschild, as a baron and
knight of the Order of Isabella, can take a
quiet walk in the Tuileries whenever he likes,
without the least fear of losing a tooth to the
king, in spite of his want of money."

In many passages of his writings Heine
gives us a characteristic portrait of Baron
James. At one place he says —

" The outbreak of war, which is inevitable,
has been deferred for the present. Short-
sighted politicians, who have recourse only to
palliatives, are satisfied and hope for days of
untroubled peace. Our financiers, especially,
are very optimistic. Even the greatest of them
seems to entertain the illusion, but not at all
times. M. de Rothschild, who has been unwell
for some time, is quite recovered and looks
well. The men who read the signs of the times
on the Exchange and make a study of the
baron's physiognomy assure us that the
swallows of peace nest in his smiles, that all
concern about war has disappeared from his
countenance, that there is no lightning in his

149

The Romance of the Rothschilds

eyes, and that, therefore, the thunder of the
guns, which threatened the world, is not going
to break on us. He breathes peace. It is true
that the last time I had the honour of waiting
on the baron he was radiant with pleasant feel-
ing, and his rosy mood almost broke into
poetry; as I said once before, when the baron
is in a good mood he tries to give expression
to his overflowing humour in verse. I thought
he was on this occasion particularly successful
in his verse ; he could not, however, find a word
to rhyme with ' Constantinople/ and scratched
his head, as all poets do when they cannot find
a rhyme. As I am a bit of a poet myself, I
ventured to observe to the baron that possibly
a Russian ' sable ' [zobel] would rhyme with
Constantinople. This did not please him,
however. He declared that England would
never forgive him, and it might lead to a
European war, which would cost the world
much blood and tears, and cost him a good
deal of money.

"M. de Rothschild is, in point of fact, the
best political barometer — I will not say
150

Baron James Rothschild

' weather- frog,' as the word is not quite respect-
ful. One must have respect for this man, if
it be only on account of the respect which he
imposes on most people. I like best to visit
him in his office at the bank, where, as a philo-
sopher, I can observe how people — not only
God's people, but all others — bow and scrape
before him. It is a contortion of the spine
which the finest acrobat would find it difficult
to imitate. I saw men double up as if they
had touched a Voltaic battery when they ap-
proached the baron. Many are overcome with
awe at the door of his office, as Moses once was
on Mount Horeb, when he discovered that he
was on holy ground. Moses took off his shoes,
and I am quite certain that a lot of these
financial agents would do the same, when they
venture to enter the office of Baron Rothschild,
if they did not fear that the smell of their feet
would be unpleasant to him. This private
cabinet of his is a very remarkable spot, inspir-
ing one with lofty ideas and sentiments, as the
sight of the sea or the starry heavens does.
Here we see how little man is and how great

The Romance of the Rothschilds

God is ! For money is the god of our time,
and Rothschild is its prophet.

" Some years ago, when I went once to see
M. de Rothschild, a gold-laced lackey brought
his chamber-vessel along the corridor, and
some speculator from the Bourse, who was
passing, reverently lifted his hat to the impres-
sive vessel. Such, to put it respectfully, is the
respect of some folk. I committed the name
of the man to memory, and am quite sure that
he will become a millionaire in the course of
time. Once, when I told him that I had
lunched en famille with Baron Rothschild at
his offices, he raised his hands in astonishment,
and said that I had received a favour that had
hitherto been reserved for Rothschilds of the
blood, or at the most granted to a ruling prince ;
he himself would have given half his nose for
it. I may say that, even if the gentleman lost
half his nose he would still have an appreciable
amount.

' The business premises of M. de Roths-
child are very extensive : a labyrinth of rooms,
a barrack of wealth. The room in which the
152

Baron James Rothschild

baron works from morning to night — he has
nothing else to do but work — has recently been
finely decorated. On the mantelpiece there is
now a marble bust of the Emperor Francis of
Austria, with whom the Rothschild house has
done most of its business. Piety will induce
the baron to have busts made of all the Euro-
pean monarchs to whbm his firm has advanced
loans, and this collection of marble busts ought
to represent a much finer Valhalla than that
at Regensburg. Whether M. Rothschild will
honour his Valhalla heroes in rhyme or in un-
rhymed royal Bavarian lapidary style, I cannot
say/'

Heine lived at Paris in those interesting and
eventful days, and he always connected the
threads of all important episodes with the
person of Baron James Rothschild. The firma-
ment of France was at that time darkened by
the perpetual menace of war, and, when the
clouds became thicker, Heine wrote —

" French bonds, which had already fallen
two per cent, during the day, made a further
drop of two per cent, on the Tortonian night-

153

The Romance of the Rothschilds

Bourse. It is said that Baron Rothschild has
the toothache. Others say that he suffers from
colic. What will be the issue? The storm
comes nearer and nearer. We can already hear
the rustle of the wings of the Valkyries in the

air."

The political situation was assuredly often
and seriously threatened. Baron James was
always well informed beforehand of events,
and he often appeared as the Napoleon of
peace. His intervention, however, was not
always crowned with success, and his informa-
tion could not always be described as
thoroughly reliable. Moreover, there were
many successful speculations to his disadvan-
tage on the Bourse ; as there were before Louis
Philippe acceded to the throne. At that time,
in the year 1830, the famous Parisian banker
Ouvrard succeeded in getting information
about the ominous ordinances of the Polignac
ministry a week before they were published,
while James had no authentic information
about them until the last moment. These
ordinances, which withdrew the rights of the
154

Baron James Rothschild

people which were guaranteed in the funda-
mental law, such as the liberty of the Press and
the right of assembly, were, as is known, the
immediate cause of the July Revolution and
the fall of the Bourbon dynasty.

Ouvrard at once appreciated the effect of
the publication. As soon as he was sure of
the facts, he admitted a few Parisian bankers
and Exchange agents to his plans, and then
hastened to London with his campaign drawn
up. When he reached the English capital, he
flung the French State-securities on the market,
the rate steadily falling, in such quantities that
he terrified the London house of the Roths-
childs and forced them to buy up the bonds in
order to keep up the price. The Rothschilds
then sent an express courier to Paris in order
to discover the motive of these enormous sales
on the part of Ouvrard. But the Paris house
could give no explanation. Baron James, who
had undertaken a four per cent, loan for the
Government only a few months before, hurried
in great excitement to the Premier Polignac on
July 24th to ask for information. There was a

155

The Romance of the Rothschilds

good deal of talk at the time of the possibility
of the ordinances being issued, but nothing was
known with certainty.

When Baron James returned from Prince
Polignac, he said openly on the Bourse that on
the word of honour of the Premier, the ordin-
ances in question had indeed been meditated,
but that there had been no serious thought of
them recently, and the rumour that they were
to be published at once was "without founda-
tion." The very next day Charles X signed
the ordinances, and on the following day they
appeared in the Moniteur.

This was the chief reason why the whole of
the loans, amounting to 78,500,000 francs, were
thrown upon the Rothschild firm and its
colleagues, as the value of the bonds fell
between twenty and thirty per cent. Long
afterwards these securities had still such a bad
name that it was impossible to find a purchaser.
The whole business, however, was less mis-
chievous to the Rothschilds themselves than to
their associates, as the latter had taken the
greater part of the bonds. They therefore

156

Baron James Rothschild

bitterly reproached the Rothschilds for leaving
them in the lurch. Whether or no the charge
was just in this one instance, even the enemies
of the Rothschilds must admit that the five
descendants of the Frankfort ghetto-family
always shared their enormous profits with their
business friends. Moreover, the July revolu-
tion, which followed this disastrous transaction,
was one of those events which no man could
have foreseen.

Ouvrard, through getting early information
about the ordinances, made at one stroke a
profit which his chief agent Amet estimated at
two million francs. Baron James lost a whole
fortune in the business, but he had still enor-
mous wealth. He was still regarded as the
richest man in France. In the 'forties of the
nineteenth century statistics were compiled in
regard to the wealthy men in France. The list
affords an interesting picture of the material
condition of the times. We gather from it that
the capital of such important firms as the
Lafitte Brothers and Delamarre was estimated
at ten million francs each, the capital of

157

The Romance of the Rothschilds

Bandon at twelve million francs, and that of
the Rougemonts and Lafonds at fifteen
millions. All these men were regarded as
great financiers, though their fortune [£400,000
to £600,000] would be considered small in
America to-day. Those whose capital reached
twenty million francs or more wielded an
almost unlimited power. Durand, Delessert,
Halphen and Aquirrevengon had twenty
millions, Hottinger and Pellaprat twenty-five
millions, Fould thirty millions, and Hoop
forty. The fortune of Baron Gressulhe was
then estimated at a hundred millions [four
million sterling].

Baron James Rothschild stood far above
them all with a capital of six hundred millions.
There was only one wealthier man in France
—the King, whose fortune was estimated at
eight hundred million francs. Prince Aumale,
with his seventy millions, was out of com-
parison with the Jewish Crcesus. James
Rothschild possessed individually nearly a
hundred and fifty million francs more than all
the other French bankers put together. He
158

Baron James Rothschild

had acquired all this in about a quarter of a
century. It is quite true that he had brought
the first millions from Frankfort, but he had
increased them a hundredfold by his own
exertions.

With the help of this enormous fortune he
attained, as we have seen, an irresistible power,
and was even able to overthrow governments.
He succeeded, for instance, in bringing about
the fall of the powerful minister Thiers. His
power 'was known to everybody. It was dis-
cussed everywhere, from the Bourse to the
barber's shop. Heine sarcastically describes
in his Reisebildern his meeting the man who
attended to the baron's corns, and what the
man said to him —

" I pay respect where it is due, as I said to
M. le Baron Rothschild when I had the honour
of cutting his corns. As I cut them, I reflected
in my mind : thou now hast in thy hands the
foot of the man who holds the whole world in
his hands ; thou art now a man of consequence.
If thou cuttest a little too sharply into the sole,
he will be annoyed and cut the greatest kings

159

The Romance of the Rothschilds

worse than ever. It was the happiest moment
of my life."

Certainly the power that lay in the hands of
James Rothschild became greater and greater.
He conducted the ablest campaigns on the
Paris Bourse. His plans were always kept
secret from everybody, and he struck his
opponent suddenly and unexpectedly. He had
hardly ended one campaign before he began
another. He surprised and crushed the other
financiers on the Bourse, forced them to be his
vassals, and enlisted them in the service of his
triumphs.

In the course of time he included in his pro-
gramme the founding of railways, in addition
to his work on the Bourse and the organisation
of State-loans. In the year 1840 he undertook
the construction of the " Northern Line," which
the State itself ought to have undertaken.
Baron James, however, set all his machinery in
motion to induce the State to drop its plan ; he
did not shrink from giving enormous bribes in
order to secure the silence of the Press and
the Parliament. The railway company issued
160

Baron James Rothschild

300,000 shares at 500 francs each, and of these

the members of the two legislative bodies

received, as "gifts," 15,000 shares, of a

collective value of 7,500,000 francs. This sum

was required in order to win the Deputies of

Parliament and the members of the Upper

House for Rothschild's plans. The Press was

disarmed in the same way. The editors of the

various papers received, according to their

respective influence, seventy or a hundred, or

a hundred and fifty shares, in the form of

presents. All the journals were then silent,

except one, the Paris National. Rothschild

had sent the editor a hundred shares, but he

sharply rejected the present — which was worth

fifty thousand francs — and could not be won

for Rothschild's cause at any price. The

struggle made by the National was fruitless,

however. Baron Rothschild eventually got the

concession of the railway.

Heine wrote at some length at the time of
Baron James and the Northern Railway affair.
He says —

' The house of Rothschild, which has asked
L 161

The Romance of the Rothschilds

the concession of the railway, and will probably
get it, is not a society in the ordinary sense of
the word; every share in its operations which
it grants to other individuals is a favour, or,
to put it more correctly, a present of money
which M. de Rothschild makes to his friends.
The shares, or the so-called promises of the
Rothschild house, are already several hundred
francs above par, and therefore any person who
asks them of Baron James de Rothschild at
par is really a beggar. However, everybody is
now begging of him; it rains begging letters,
and as distinguished people set the example,
there is no shame in it. M. de Rothschild is,
on that account, the hero of the hour; in fact,
he plays so important a part in our modern life
that I must describe him as frequently and
seriously as possible. He is, in point of fact,
a very remarkable person. I am no judge of
his financial ability, but it must be very con-
siderable, judging from results. He has a rare
faculty of observation, or an instinct for
appreciating the capabilities of other people in

every sphere of life. In that respect he has
162

Baron James Rothschild

been compared to Louis XIV, and it is a fact
that, differently from his colleagues, who are
always surrounded by a general staff of
mediocrities, we always find Baron James in
intimate relations with the most distinguished
people in every department. Even if he knew
nothing about a particular field, he would be
sure to know who was the best man in it.
Possibly he does not know a single note of
music, yet Rossini was always a personal friend
of his. Ary Scheffer is his court painter.
Careme was his cook. M. de Rothschild
certainly does not know a word of Greek, yet
the Hellenist Letronne is the savant whom he
most respects. His physician was the able
Dupuytren, and there was quite a fraternal
feeling between them. He was one of the
first to appreciate the ability of Cremieux, the
distinguished jurist, who has a great future
before him, and Cremieux found in him a loyal
supporter. In the same way he appreciated
from the start the political capacity of Louis
Philippe, and was always in the confidence of
that master of statecraft. Emile Pereire, the

L2

The Romance of the Rothschilds

Pontifex Maximus of the railways, was entirely
a discovery of his; he made him his first
engineer and employed him to make the line to
Versailles. Poetry, both French and German,
is much appreciated by M. de Rothschild,
though it seems to me that here he is rather
polite, and that in reality the baron is not so
enthusiastic for our living poets as for the great
dead — Homer, Sophocles, Dante, Cervantes,
Shakespeare, Goethe, and other earlier poets,
men of acknowledged genius, who, freed from
all earthly toils, no longer feel the pinch of this
life or desire shares in the Northern Railway.

" At the present time Rothschild's star is at
its zenith. I am not sure if I am not a little
wanting in respect in saying that M. de Roths-
child is merely a star. He will not, however,
scold me, as Louis XIV once fell angrily on
a poor poet who had had the impertinence to
compare him to a star ; he was more accustomed
to being called the sun, and had adopted that
heavenly body as his official symbol.

' To be quite safe, nevertheless, I will liken
M. de Rothschild to the sun, because, in the
164

Baron James Rothschild

first place, it costs me nothing ; and because, as
a matter of fact, it is appropriate enough at the
present time, when everybody worships him
and trusts to be warme'd by his golden rays. . . .
Between ourselves, this worshipping mania is
somewhat troublesome to the poor sun ; it has
no rest from its worshippers, and there are a
good many of them who are really not worthy
that the sun should shine on them. These
Pharisees sing their praises and prices very
loudly, and the poor baron suffers so much
moral torture from them that one is bound to
feel sympathy for him. I am inclined to think
that his money is more of a curse than a bless-
ing to him. If he had a hard character, he
would have less to suffer, but so kindly and
good-natured a man as he is must be deeply
hurt by the sight of all the misery that he is
called upon to assuage, the claims that are
constantly made on him, and the ingratitude
that follows each of his acts of charity. Exces-
sive wealth is, perhaps, harder to bear than
poverty. I advise any man who is in great
need of money to go to M. de Rothschild : not

165

The Romance of the Rothschilds

for the purpose of begging anything (I doubt if
he would get much), but in order to find comfort
in the sight of his misery amid wealth. The
poor devil who has too little and cannot help
himself will then see that there is a man who
suffers far more than he because he has too
much money, because all the money in the
world flows into his capacious pockets, and
because he has to carry about with him this
intolerable burden while a crowd of hungry
men and thieves gather about him and stretch
out their hands to him. And what fearful and
dangerous hands they are ! ' How do you
do? ' a German poet once asked the baron. ' I
am mad/ the baron replied. * When I see you
throwing money out of the window I will
believe it,' said the poet. The baron answered
with a sigh : ' That is precisely my madness,
that I do not often throw money out of the
window.' '

Heine, living in close touch with Baron
Rothschild, did not himself escape the fever
for speculation. But the goddess of fortune
did not favour the great poet, and he lost on
166

Baron James Rothschild

'Change many a fee that he got for his works.
He did not lose his humour with his money,
however, and he said to Baron James, smiling —

"The Bourse taught me a great truth; it
taught me that to speculate on it is a sin — if
you lose."

Heine did not take his speculations very
much to heart, but generally laughed about
them. One day Baron Rothschild asked him
whether he had lost anything in a big slump
that had occurred on the Bourse.

"Anything? A good deal," the poet said.
" But it serves me right. I now see how right
the Rabbi of Prague was."

"The Rabbi of Prague?" asked Baron
James.

' Yes. It is an old story that I heard when
I was a boy, and just occurred to me. The
Rabbi of Prague was crossing the bridge when
he met an old Jewess who cried desperately
to him : ' My God, my God ! Help, Rabbi,
help! What shall I do?'

" ' What is the matter ? ' asked the Rabbi.
' My son has broken his leg.'

167

The Romance of the Rothschilds

" ' Broken his leg ? How did he do that ? '

" ' He fell off a ladder an3-

'"Off a ladder?' interrupted the Rabbi.
' Serves him right. What was a Jewish youth
doing on a ladder? '

" So you see, baron," Heine concluded, with
a laugh, "the same thing happened to me.
What was a poet doing on the Bourse ? "

James Rothschild knew at that time what it
was to lose on the Bourse, though the losses
did not disturb him, as his millions increased
from day to day. It was not so much now by
speculation on the Bourse as by the construction
of railways. Baron James was no longer con-
tent to confine himself to French railway
enterprises, but extended his operations to
foreign countries. He constructed, for instance,
the railways of Belgium, and by this he and
his brothers considerably enlarged their for-
tunes. The chief success of the Rothschilds
was not exactly in the building of railways, but
in their speculations with the shares. When
they founded railway companies in the form of
limited liability companies, they never put the
1 68

Baron James Rothschild

shares on the market, but either took them up
themselves to the full amount, or let one or two
allied banks, such as the Lafitte-Blount or the
Hottinger firms, into the transaction. This
was done, for instance, at the establishment of
the French railway, when Baron James himself
took up more than a hundred thousand out
of the four hundred thousand shares. The
nominal value of the shares was five hundred
francs, but the advantage of keeping them was
soon seen when, in a very short time, they ran
up to nine hundred francs. When the price
reached its highest point Baron James suddenly
sold his shares, and in this single transaction
made a profit of more than forty million
francs.

Baron James always found time, amid his
enterprises and speculations, to pay tribute to
charity, although his contemporaries by no
means describe him as a soft-hearted man. It
is true that his benevolence was generally
noticed in connection with Jewish subjects.
When on one occasion the troubles of the Jews
at Damascus exposed many Jewish families to

169

The Romance of the Rothschilds

the fanaticism of the Orientals, Baron Roths-
child did not hesitate a moment to come to
their assistance. He saw that the Jews of
Damascus could not rely on any effective pro-
tection on the part of the Government; he
therefore had several ships fitted out, and sent
them to the relief of his co-religionists, while
the other wealthy Jews of Paris did nothing
whatever for the sufferers.

Heine wrote at the time—

' The Jews of France have been too long
emancipated to keep the bonds of the race very
tightly about them; they have almost entirely
adopted French nationality. They are just as
French as their neighbours, and have outbursts
of enthusiasm which may last for twenty-four
hours and even, if the sun is hot enough, for
three days. . . . That is true of the best of them.
Many of them still practice the Jewish cere-
monial, the external cult, mechanically, without
knowing why, merely out of custom; of inner
belief there is not a trace, for the witty acid of
Voltairean criticism has done its work in the
synagogue as well as in the Christian Church.
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Baron James Rothschild

For the French Jews, as for the French gener-
ally, gold is the god of the hour, and industry
is the prevailing religion. In this respect the
Jews of our time might be divided into two
sects, the sect of the rive droite and the sect of
the rive gauche. The names are taken from
the two railways which run to Versailles along
the Seine, one on the right bank and one on the
left; they are controlled by two famous rabbis
of finance, who diverge from each other as
much as Rabbi Samai and Rabbi Hillel did in
the earlier Babylon.

"We must do the grand-rabbi of the rive
droite, Baron Rothschild, the justice of saying
that he has shown a nobler sympathy for the
house of Israel than his learned antagonist,
the grand-rabbi of the rive gauche, M. Benoit
Fould, who, while his co-religionists were
persecuted and oppressed in Syria at the
instigation of a French consul, made a few
speeches in the French Chamber of Deputies
on the conversion of bonds and the bank-dis-
count with the calm, detached air of a Hillel."
Heine then goes on to speak of the Damascus

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The Romance of the Rothschilds

trouble, the cause of which was the old calumny
of killing children. He says —

" M. Thiers asserts in his morning audiences
with an air of the firmest conviction that it is
unquestionable that the Jews drink Christian
blood on the feast of the Passover; chacini a
son gout. All the witnesses have stated that
the Rabbi of Damascus killed Father Thomas
and drank his blood — probably his flesh was
divided among minor officials of the synagogue.
In this, he says, we find a sombre superstition
and religious fanaticism surviving in the east,
though the western Jews are more humane and
enlightened; many of them are quite dis-
tinguished for freedom from prejudice and for
good taste. There is M. de Rothschild, for
instance, who, if he does not belong to the
Christian Church, is at all events an adherent
of Christian cooking, and has taken into his
service the greatest cook in Christendom, the
favourite of Talleyrand, formerly Bishop of
Autun.

' That was the kind of talk you might hear
from the child of the Revolution. . . . And he
172

Baron James Rothschild

spoke so convincingly that one was compelled
to believe in the end that the Jews dined on
the flesh of Capuchin monks."

While Heine penned his brilliant accounts
of his time, Baron James continued to increase
his fortune. He worked and fought with
incredible endurance ; sometimes he won, some-
times he was beaten. As often as he won his
millions grew larger. All his enterprises were
blessed with an almost fabulous success, and
he seemed to emerge with rejuvenated strength
even from the struggles in which he was
beaten.

On one occasion he suffered a really severe
loss, but it was due to embezzlement. His
fortune, however, bore the loss without waver-
ing, though the amount was considerable. The
cashier of the Northern Railway, Carpentier,
was the culprit, and the fraud, which took place
in September 1856, ran to millions of francs.
This unprecedented loss is described as follows
in a journal of the time —

' The mystery that has enveloped the robbery
of the Northern Railway is being gradually

173

The Romance of the Rothschilds

cleared up. The directors of the company
naturally seek to minimise the fraud as much
as possible, as it does little credit to their
vigilance and foresight. At first they tried
to prevent the publication of any reference to
the affair. The Paris press was bought by
them, but foreign papers were not prepared to
be silent about the affair, and the Northern
Railway was compelled to give an explanation,
in which the loss is stated at about six million
francs. This statement is not at all correct. It
refers only to the loss in shares, whereas the
cash-boxes also were almost emptied by the
thieves. In the smaller cash-box alone there
were 1,800,000 francs. What loss the Northern
Railway, itself has sustained, we are not
informed. It would, in fact, be difficult to
determine it, as nearly all the documents were
destroyed by the thieves. The sum embezzled
by them is estimated at from thirty to thirty-
two million francs. However, the Northern
Railway has not to bear the whole loss; MM.
Rothschild, Andre and de Morny lose ten
millions each of the sum. Carpentier and
174

Baron James Rothschild

Grellet and their confederates must have been
engaged for a considerable time in carrying out
their project, as they had realised large sums
before they fled, and had bought a steamer in
England for 1,800,000 francs months before.
From the papers that were found after their
flight it seems that they had bought a house in
New York. For this reason it is believed that
they have gone to America by way of England.
How long Carpentier and Grellet have been
carrying on their frauds cannot be accurately
determined; it is known only that they have
been selling shares on the Bourse for a long
time. They had acted with great astuteness
so as to be able to report the requisite number
at the revision of the shares, which was
entrusted to them.

" The shares deposited with the administra-
tion are in parcels of a thousand. With the
assistance of smaller clerks, who were bought
by them, they took two or three hundred shares
from each of these parcels and fastened the
remainder together again. Hence, at the
revision, which does not seem to have been

175

The Romance of the Rothschilds

carried out very carefully, all the shares seemed
to be there, and the thieves were thus enabled
to realise a considerable sum before they
carried out their final stroke.

" Carpentier was the first to leave Paris. He
had asked and obtained from Rothschild four
days' leave of absence. On this occasion he
had a long conversation with the baron, who
was very fond of him. M. de Rothschild had
just managed a very profitable piece of busi-
ness, and told Carpentier that he had made five
million francs by it.

" ' If,' he added, ' I bring off my Algerian
railway affair, I hope to add three millions to
the five/

" ' Will you put the three before the five, or
after it ? ' said Carpentier. ' Will it be thirty-
five or fifty-three millions? Put it before, and
give me the five; you will still have a neat little
sum.'

' I am not going to give you five millions,'
said Rothschild, laughing at the joke, 'but
here is my watch chain as a pleasant memento
of the day.'

Baron James Rothschild

" The chain which Rothschild handed to
Carpentier was one of great value. However,
Carpentier had something larger than that in
view; before he left Paris he sent it to his
brother, who still has it.

"As we see from this conversation, which
Rothschild himself told to his friends, the
wealthy baron was on very familiar terms with
Carpentier. He loved him as his own son, and
had secured for him the position of chief
cashier to the Northern Railway. It will be
understood, therefore, that Rothschild is
terribly upset by the conduct of his protege,
and would give anything to capture him. In
giving his instructions to the Northern Railway
official who was sent with detectives in pursuit
of Carpentier, he opened an unlimited credit
for him, and told him to spare no cost and
shrink from no means; he would gladly give
ten million francs to get Carpentier in his
power, and, if there was any reluctance to give
him up anywhere, they must bring him away
by force.

" From Paris Carpentier went straight to
M 177

The Romance of the Rothschilds

London, on August 31, and from there to
Liverpool, where the steamer he had bought
lay. He had her made ready at once and put
out to sea, where he was to await his con-
federates. After Carpentier's departure Grellet
was entrusted with the charge of the cash-
boxes, and on the day for paying the officials
and workers of the Northern Railway he was
not to be found. The head of the staff sent
word to Rothschild that Grellet had not come.
Rothschild, who had a second key of all the
safes and did not suspect anything wrong, went
to the offices to let them have the money to pay
the employees. He opened the smaller safe
and found it empty, and ordered the manager
to keep the strictest silence about it. Then he
opened the larger safe and found that also
empty. The loss of the shares was not dis-
covered until some time afterwards.

' They at once made every effort to secure
the thieves, but they had a long start; at Liver-
pool it was learned that Grellet had taken a boat
out to the steamer where Carpentier awaited
him. Four other employees of the company
178

Baron James Rothschild

disappeared at the same time. Carpentier took
his mistress, a certain Mile. Georgette, with
him; he had supported her in luxury at Paris.
Both he and Grellet are quite young. Carpen-
tier is of a light complexion, and seems weak
and pale, and has all the appearance of a man
suffering from consumption. Grellet belongs
to a very good family, which has means that are
estimated at 500,00x3 francs. His mother is
still alive. She became insane when she heard
what her son had done. His uncle on the
mother's side, M. Planchet, is a very respected
man. Another uncle occupies a prominent
position as a French magistrate.

' The statement that the two young men were
driven to the crime by their relations with
women and losses on the Bourse is false. They
both led very regular lives, and it was only in
consequence of the crime that they recently
spent a good deal of money. They were in no
sense impelled to the crime by debt. Possibly
this is the largest sum that has ever been stolen,
but the Rothschild firm will be quite able to
sustain the loss."

M 2

The Romance of the Rothschilds

Thus the French press on the baron's enor-
mous loss. On another occasion he made a
quite unexpected profit. The famous painter
Eugene Delacroix, who was struck with the
features of Baron Rothschild, decided that he
would like to have the baron for a model,
dressed in a beggar's rags. The baron liked
the idea, and consented. On the following day
he went to the painter's studio, attired in the cos-
tume proper to his part, and, when he knocked,
one of the artist's pupils opened the door. He
looked compassionately at the "poor beggar"
and gave him a coin or two. The pupil was
himself a poor youth, though he had consider-
able talent. He was not a little astonished
when, on the following day, a servant of
Baron Rothschild handed him the following
letter—

" DEAR SIR,

' You will find enclosed the capital
which you handed to me at the door of M.
Delacroix's studio, with the interest and com-
pound interest on it — a sum of ten thousand
1 80

Baron James Rothschild

francs. You can cash the cheque at my bank
in the Rue Lafitte whenever you like.

" BARON JAMES ROTHSCHILD."

Rothschild always liked to mix with artists,
especially painters. He was, however, rather
partial to the artists with whom he was person-
ally acquainted, while many of the most distin-
guished men of the artistic world were complete
strangers to him. It happened once, for in-
stance, that Baron James saw the artist Jadin on
a scaffolding, doing a fresco, and cried to him,
" Hello, you painter up there, come here, I want
to speak to you." On another occasion he
wanted the same artist to paint his portrait. It
was nothing to him that Jadin's proper sphere
was fresco-painting ; his idea was that, as Jadin
was accustomed to doing such large pictures,
a single face would be painted by him on very
moderate terms.

" Dear master," he said to the artist, " I want
to have my portrait painted. But you must tell
me first how much it will cost."

The painter did not hesitate a second.

181

The Romance of the Rothschilds

" Five thousand francs," he said firmly.

" Oh, that is too much. What would it come
to if I had my wife's portrait painted also ? "

"Well," said the artist, "the two portraits
would cost ten thousand francs. If one costs
five thousand, two, naturally, cost ten thousand."

Baron Rothschild did not attempt to bargain
further. He took his hat, and avoided the
artist for a long time. He was, however, deter-
mined to have his portrait painted by a famous
artist of the time, and, as Jadin would not do it,
he turned to others. His choice fell on the
famous battle-painter Horace Vernet : after the
fresco-painter a battle-painter — it throws light
on the character and artistic ideas of James
Rothschild. He went to Horace Vernet and
asked the artist how much he would ask to
paint a portrait.

" For you, baron," was the reply, " my price
is four thousand francs."

" The devil ! " exclaimed the financier. " It
is only a question of three or four strokes of
your brush, and you want a sum like that."

" Ah f " said the painter, shrugging his
182

i-u.rm-: OF TKHIUKIKI) .n-:\v IN
AT. s i-.\Mors IMCTI i'>i-:.

Baron James Rothschild

shoulders. ' You want to bargain when there
is question of art, do you, baron? Well, now
I want five thousand francs, and will not take
a penny less."

The baron gave a cry of astonishment.

" If you say another word, I treble the fee,"
said the artist.

•

The baron hurried from the studio. He
thought the artist was mad.

" Wait a minute," said the artist. " I will
paint your portrait for nothing. Now you may
go."

Horace kept his word. In his great picture,
" On the way to Smala," any one may recognise
the face of the terrified Jew who is making off
with a box full of money and jewels under his
arm. The face exhibits the conflict of fear with
the most sordid avarice, and its features are
unmistakably those of the famous banker. The
whole of Paris laughed over this misadventure
of the financier, and his parsimoniousness cost
him many an unpleasant quarter of an hour.

When the great exhibition was held at Paris
in 1855, Rothschild received from the Emperor

183

The Romance of the Rothschilds

Francis Joseph I the order of the Iron Crown,
and at the same time he received the French
Grand Cross of the Legion of Honour. He
remained, however, just as sparing in spite of
his decorations. It was only twenty centimes
(two pence) to enter the exhibition on Sundays,
and more on week-days. On the first Sunday
after the opening of the exhibition one of
the first persons to enter was Baron James
Rothschild.

" That is the way to become a millionaire,"
said a journal of the time which gave the news;
" never pay a franc for something you can get
for twenty centimes."

The baron was often pricked by the pens of
French journalists on account of his meanness.
His chief persecutor was the Constitutionel, a
very popular paper of the time, much read at
Paris. On one occasion it cynically put side
by side two short notices which did not put the
benevolence of the wealthy baron in a very
favourable light. The first paragraph an-
nounced, in terms of praise, that Cornelius, the
great German painter, had given £300 for the
184

Baron James Rothschild

poor of the city of Frankfort. The other notice
dryly announced —

" Baron James Rothschild, the great German
financier, also gave yesterday a sum of twenty
pounds for the poor of the city of Paris."

The point of this malicious juxtaposition was
obvious, and Paris laughed a good deal over
the baron. However, the financier wished to
have his revenge, and he asked Heine, of whose
connection with the Paris Press he was well
aware, to reply to the skit of the Constitutionel
in some other journal. Heine laughed and
closed his eyes in his usual way, and said that
he would do so. A few days later the following
paragraph appeared in the Figaro —

' The Constitutionel betrays a partisanship
which is injurious to honourable men. It sings
its hymns of praise only to those who have been
favoured by the goddess Fortuna. Ordinary
mortals are not noticed in its columns. A writer
recently practised philanthropy on a far larger
scale than Baron James Rothschild, in propor-
tion to his means. The said writer gave a
penny to a blind flute-player on the Pont des

185

The Romance of the Rothschilds

Arts, yet the Constitutionel has not said a
word about the donation down to the present
day."

The famous French writer George Sand once
discovered a clever way of making the baron
pay more generously for a charitable object.
During a bazaar which Princess Czartoriska
organised at Paris for the benefit of the Poles,
George Sand had charge of a stall laden with
perfumes. Baron James passed the stall, and
she cried to him —

" Won't you buy something from me, baron ? "

" My God ! what do I want with perfumes?"
said Rothschild. " I have a good idea, how-
ever. Give me your autograph, and I will
gladly pay for it."

George Sand smiled; then she took a sheet
of paper, wrote a few words on it, and gave it
to the baron. His face fell when he found that
the great writer had inscribed on it the following
lines —

" Receipt

for 1000 (in words, one thousand) francs, which
1 86

Baron James Rothschild

I have to-day received from Baron James
Rothschild for the benefit of the poor oppressed
Poles.

"GEORGE SAND."

Rothschild made no trouble about the
malicious joke ; he took out his pocket-book and
paid the thousand francs in silence.

Scribe, a very popular comedy-writer of the
period, was passing George Sand's stall at the
time, and, when he saw Baron James put down
the thousand francs without a word, he remarked
ironically—

" For a great sorrow it is always difficult to
find words."

The witticism circulated from mouth to
mouth in Paris, and caused much amusement;
as did also George Sand's success in forcing the
niggardly baron to pay so much. Heine heard
of the matter and determined to avenge the
baron on the writer, who was, in his opinion, a
man of little ability. One evening when Heine
was present amongst a large company at Roths-
child's house, he began to praise Scribe in a

The Romance of the Rothschilds

remarkable way. The baron noticed it, and
asked Heine why he did it.

" Oh, I can safely praise Scribe," said Heine
quietly, " because I am sure that there is not a
person in the room who believes a word I say
about him."

Baron James laughed outright, and Heine
went on —

" Scribe will be immortal — as long as he
lives ! But not a day longer ! "

Paris now laughed at Scribe, and indeed
laughed more than it had ever done over any
joke of Scribe's.

There are, of course, no authentic documents
to inform us whether Baron Rothschild, to
whom Heine was of considerable service, ever
gave material support to the great poet.
Heine's circumstances were far from brilliant,
but he was too proud ever to ask for assistance.
One evening Rothschild noticed Heine humor-
ously remarking to their host that a man must
always have his purse in his hand at Paris, as
everything costs money. It was no wonder,
he said, that people like himself got into diffi-
188

Baron James Rothschild

culties; he could always find a use for a
thousand-franc note. His words were over-
heard by a financial upstart, who said affably
to Heine —

" Let me lend you a thousand francs."

Heine was annoyed that a man whom he had
never seen before should offer him money. He
looked sharply at the man for a moment, and
then said—

' You, sir ... are not worth a thousand
francs to me."

Moreover, the suggestion that Heine received
any material assistance from Baron James is
not consistent with the fact that the poet,
who never concealed his circumstances in his
writings, does not mention receiving any money
from Rothschild. He frequently speaks of
other people who lent him money, but does not
say a word about help from Baron James. It
is, in fact, improbable that the great poet ever
received anything from the financier, otherwise
he would not have shown so much independ-
ence as he did in regard to Rothschild, and
would not have ventured to shoot the arrows

189

The Romance of the Rothschilds

of his wit at him, as he often did. On the
other hand, Rothschild would not have liked
Heine so much if the friendship had cost him
money.

Baron James was very proud of his relations
with Heine. He liked to have his dinners and
other functions irradiated with the poet's most
brilliant display of wit. Sometimes, however,
he was disappointed. One evening, when
Baron James particularly wished Heine to
entertain his guests, the poet was singularly
silent.

" What is the matter?" asked the baron.
' You are usually so gay and full of witty
remarks. . . ."

" Quite right," said Heine. " But to-night I
have exchanged views with my German friends,
and my head is fearfully empty."

After that he remained as silent as ever.
Somewhere about the same time Baron James
was conducting a large financial transaction,
and he gave a very choice dinner in honour of
the bankers who were staying in Paris. Heine
was not invited to the dinner, but, when one of
190

Baron James Rothschild

the guests at table expressed a wish to meet the
poet, Rothschild replied that it could easily be
managed. He wrote a few lines on a piece of
paper, asking Heine to come and take coffee
with him. A footman took the note to Heine's
house, and returned with this reply to the
baron's invitation —

" M. le Baron, I usually take my coffee where
I have had my dinner."

Another of the distinguished writers who
have referred to Rothschild in their works is
Borne. He lived many years at Paris, and as
he was, like Rothschild, a son of Frankfort on
the Main — the former Jew Street at Frankfort
was afterwards called Borne Street — he paid a
good deal of attention to Baron James. Borne
was, however, by no means enchanted with the
youngest of the Rothschilds, and he often
spoke very ironically of him. In one letter, for
instance, he writes as follows—

u Paris, Saturday, January 28, 1832.

" Rothschild has kissed the Pope's hand, and
at his departure expressed his satisfaction with
the successor of Peter in the most gracious

191

The Romance of the Rothschilds

terms. Now things are getting at last into the
order that God desired when He created the
world. A poor Christian kisses the Pope's
feet; a wealthy Jew kisses his hand. If Roths-
child had put his Roman loan at 60 per cent,
instead of 65, and so been able to give the car-
dinal-chamberlain another 10,000 ducats, he
might have been permitted to fall on the Holy
Father's neck. The Rothschilds are assuredly
much nobler than their ancestor Judas Iscariot.
He sold Christ for thirty small pieces of silver;
the Rothschilds would buy Him, if He were
for sale. That seems to me very fine. Louis
Philippe will have himself crowned if he is
still king in a year's time; not at St. Remy at
Rheims, but at Notre Dame de la Bourse at
Paris, and Rothschild will officiate as arch-
bishop. After the coronation pigeons will be
sent out, as usual, and one of them, a turtle-
dove, will fly to St. Helena, settle on Napoleon's
grave, and laughingly inform his remains that
they saw his successor anointed yesterday, not
by the Pope, but by a Jew; and that the present
ruler of France has taken the title, ' Emperor of
192

Baron James Rothschild

the five per cents., King of the three per cents.,
Protector of bankers and exchange-agents.'
But I really do not know what the silly dove
sees to laugh at in that. Would it not be a
great blessing for the world if all the kings were
dismissed and the Rothschild family put on
their thrones ? Think of the advantages. The
new dynasty would never contract a loan, as it
would know better than anybody how dear such
things are, and on this account alone the burden
on their subjects would be alleviated by several
millions a year. The bribing, both active and
passive, of ministers would have to cease ; why
should they be bribed any longer, or what would
there be to bribe them with? All that sort of
thing would be ancient history, and morality
would be greatly promoted. All civil lists
would be abolished, except that of the Roths-
childs, but this would lay no new burden on the
community, as the Rothschilds had their lists
— longer than those of any other prince — when
they were private individuals.

" If the house of Rothschild sat on the throne

of France, the world would be relieved of the

N 193

The Romance of the Rothschilds

great dread of a war between that powerful
house and the house of Habsburg. Austria
and Rothschild have, as the English papers say
on good authority, been for some time much
annoyed with each other. Austria has dis-
covered that the friendship with which the
Rothschild brothers honour it is likely to cost
it dear. The bank concluded its last loan at a
price of 85 or 86, and won 6 or 7 per cent,
immediately the contract was signed. So extra-
ordinary a circumstance was bound to attract
the notice of the Austrian cabinet. It therefore
decided to employ less expensive agents in
future for its finances, or to throw open its
financial transactions to competition. The
Rothschild firm, in order to frustrate these
plans and show the Austrian Government that
people cannot with impunity break an alliance
with them, made money so scarce in Vienna,
Frankfort, and other cities, that no other firm
was in a position to undertake the loan. Austria
had to sue for pardon.

' There had been some strained feeling

between the two houses at an earlier date
194

Baron James Rothschild

Austria had entrusted to the Rothschilds the
sums which had fallen to its share out of the
French contribution-money. These sums were
to be invested in French funds, which were
then low, and they were to be sold again when
they reached a better figure. After a few years
the Rothschilds sold the stock and represented
them as at 95, but Austria discovered that at
the time of the sale the funds were at par.
There was a little difference of .£750,000.
Austria resented the matter, but Rothschild
secured the mediation of friends of both parties
and the quarrel was composed.

'The French journal which relates, on the
strength of the English Press, these stories of
war and peace in all their details, comments as
follows on the matter : ' What are the means
which enable these bankers to compel the
Austrian Government to fall in with their
wishes? They use the same means as they
did under the minister Villele, with whom
Rothschild shared enormous gains, as we will
show; the same means which they adopted
recently in negotiating a loan with the Perier

N2

The Romance of the Rothschilds

ministry. Have we not seen the French funds
depreciated by continuous sales, effected by
those who wanted to have the loan at an im-
moderate price? These lenders have done
under our own eyes the very thing of which
the Austrian Government complained when it
wished to break with them. Our 5 per cents,
were brought down to less than 80 francs, in
order to get the loan at that price, and as soon
as the loan was contracted at 84, the funds rose
above 88 francs. It is always the same game
that these Rothschilds play, in order to enrich
themselves at the cost of the land that they
exploit. . . . We have already shown that the
financiers are the nation's worst enemies. They
have done more than any to undermine the
foundations of freedom, and it is unquestion-
able that most of the peoples of Europe
would by this time be in full possession of
liberty if such men as Rothschild, Ouvrard,
Aguado, Casimir Perier and others, did
not lend the autocrats the support of their
capital.

' ' Only this week Dupin spoke of bankers
196

Baron James Rothschild

in the Chamber as lynxes! Carnivorous
animals, of the cat family. Casimir Perier
bitterly complained of this unseasonable bit of
natural history. That brings me back to the
Rothschilds. Once more I ask — Would it not
be a good thing for the world if all the crowns
were placed on their heads instead of lying at
their feet as they do now? It is really coming
to that. Although the Rothschilds do not yet
occupy thrones, they are at all events asked
their advice as to the choice of a ruler when
a throne falls vacant. Herr von Gagern
has recently explained this openly in the
Allgemeine Zeitung. It is a remarkable
story/

" Herr von Gagern was formerly a member
of the Bundestag. This distinguished states-
man, whom aristocrats represent as so charm-
ingly romantic, and who used to walk amongst
the tombs of the ancient knights by moonlight,
caught a chill in his nocturnal wanderings a few
years ago. Since that time he has been afflicted
with a political discharge at the mouth, a
malady which is as rarely found among diplo-

197

The Romance of the Rothschilds

matists as extinction of the voice is common
amongst them. However, this curious ailment
of Herr von Gagern affords us some instructive
and useful information about the obscure
physiology of the diplomatist and the aristocrat.
The great statesman sends a letter from Harnau
to the Allgemeine Zeitung about Greece. Now,
Harnau is not in Greece, but in Taunus, and I
believe that two years ago, when we spent the
summer in the south, we ate a meal at Harnau
one evening.

" However, Herr von Gagern writes that he,
von Stein and Capodistrias had often discussed
Greece at Nassau and Ems. I can confirm
that. At Ems I heard these gentlemen, two
summers in succession, frequently discussing
together. But, although I listened a good deal,
it did not occur to me that they were talking
about Greece. It seemed to me that they were
talking about their own affairs and their
families. They were * amongst the most ardent
and zealous partisans of Greece, or of the Greek
question/ Why Herr von Gagern translates
the well-known word * Greece ' into ' the Greek
198

Baron James Rothschild

question/ I will explain. There is nothing in
the world so soft-hearted, warm-blooded, sensi-
tive, tearful and emotional as a diplomatist, and
he has to be very careful not to injure his deli-
cate health by violent and frequent outbursts
of feeling. A rigorous diet is indispensable to
him. Hence, when thousands of miserable
Portuguese are slaughtered by Dom Miguel;
when the Italians, driven into the deadly net
by their hunters, are shot down ; when Belgium
is cut up like a cheese and wrapped up in pro-
tocol-papers, to be served out to the hungry
buyers; when the Poles are disappearing be-
tween the jaws of tyrants — how can diplomatists
endure the daily sight and sound of all these
atrocities ? Yet the fate of nations is entrusted
to them. How do they assuage the pain ? By
a simple alteration of words. They imagine
that there is no such thing as a country or a
people. They never say Portugal and the Por-
tuguese, Italy and the Italians, and so on, but
the Portuguese question, or the Italian question.
It is a kind of salts of magnesia for cooling the
blood and tranquillising the heart. It is for

199

The Romance of the Rothschilds

this medicinal reason that Herr von Gagern
speaks of the Greek question ; but his heart is
sound.

"Herr von Gagern continues: 'Monarchic
constitution, German guard, and sufficient credit,
were the general principles on which we were
agreed.' Listen to the great principles of these
great men. . . . They send their fleets to
separate the Greeks from their enemies, so that
they shall not win a final victory. . . . The
Greeks are free ! The cry echoes from court
to court, and the monarchs now consult us as to
the best means of putting an end to disorder.
There are a good many hungry sons of princes
in Europe who might be fed on the flesh and
blood of the Greeks — hence, 'monarchic con-
stitution/ The Greeks are fanatical, they
suffer from a most dangerous inflammation of
the heart, and the strongest remedy must be
applied at once — hence, * German guard.' But
there is no son of a king so foolish as to take
his own money to Greece; the Greeks must
open their purses to him if he is to make them
happy; but the Greeks are poor, and their
200

Baron James Rothschild

monarch must borrow in their name — hence,
' sufficient credit.'

" Many sons of princes professed themselves
ready to make the Greeks happy. Which of
them shall we choose? That is the Greek
question. The noblest, the bravest, the ablest,
or the best-tempered? No, but the one who
has the best credit, the one who will be best
able to pay his ministers, equerries, ambassa-
dors, court-marshals, chamberlains, and noble
officers of the guard. Herr von Gagern there-
fore carefully inquires at ' the first banking
house in Europe' (or of M. de Rothschild)
which prince has the longest credit. M. de
Rothschild finds that all the princes of Europe
are in his credit-book except Prince Frederick
of the Netherlands, and he concludes that the
prince who has never asked him for credit is
the most worthy of it. He therefore reports to
Herr von Gagern : Prince Frederick of the
Netherlands has the best credit. ' Then Prince
Frederick of the Netherlands is the most worthy
to become King of the Greeks — I mean the
Greek question,' says Herr von Gagern."

201

The Romance of the Rothschilds

Borne clearly wished in this letter to satirise
the Greek question, as it then stood, but the
point of his sarcasm was also directed against
Baron Rothschild. Heine was again requested
to avenge the baron, and he poured his sharpest
satire on Borne on every possible occasion.
Even after Borne's death Heine ridiculed him
so much that one of his friends challenged
the poet to fight a duel. It took place on
September 7, 1840. Heine fired in the air, but
his antagonist aimed at and hit him. Fortun-
ately, the bullet struck Heine's purse and he
was uninjured. When he gave Baron Roths-
child an account of the duel, he added —

"And do you know what saved my life?
My purse. The bullet stuck in it. I call that
money well invested."

The intimate friendship between Baron
James and Heine was never interrupted.
Rothschild sought the poet's company, and,
whenever there was a quiet time on the Ex-
change, he used to ask Heine to come and dine
with him en famille, so that he could enjoy the
familiar conversation of the poet.
202

Baron James Rothschild

On one of these occasions Heine was, con-
trary to his usual custom, very chary with his
speech. Rothschild wanted to unlock his
tongue at any cost, and he ordered his finest
wines to be served. The poet remained silent,
however. At last Rothschild produced a bottle
of his finest Lacrima Christi, and handed Heine
a glass of it. The poet lifted the delicate glass
to his lips, sipped it, and said nothing. Then
Rothschild asked him how he liked the wine.

"Well, thank you," he said.

" Perhaps you do not know what you have
been drinking," said the baron. ' That is
Lacrima Christi, the noblest and best wine in
the world, made from the grapes which ripen at
the foot of Vesuvius. That is why it is so
fiery. Every drop of it costs a ducat. And
you have not a word to say about this heavenly
drink."

"Do you know, baron," Heine asked, "why
is it called Lacrima Christi, or the Tears of
Christ?"

"Why?"

' These are Christ's tears," said Heine, " be-

203

The Romance of the Rothschilds

cause Christ weeps at the sight of two wicked
Jews like us drinking so precious a wine while
there are thousands of poor devils in Paris
without a bit of bread."

Of the private life of Baron James the
chronicles of the time relate very little. It is
possible that his great financial transactions and
the charm of the social life of Paris left him
no time for the intimacy of family life; it is,
however, equally possible that, like most of the
Jews, he regarded intimate domestic life as a
sacred thing into which he would not allow pro-
fane publicity to penetrate. His social obliga-
tions and business undertakings compelled him
only too frequently to appear in public, and he
therefore wished to withdraw from the glances
of the inquisitive at least as far as his domestic
life was concerned.

He had married his niece, the daughter of his
brother Solomon of Vienna. Betty Rothschild
was thirteen years younger than her uncle. Six
children were born of the marriage of Baron
James and Betty, and all married within the
family, generally their cousins.
204

Baron James Rothschild

Baron James Rothschild died on November
15, 1868, and was buried in the family vault of
the de Rothschilds at Pere Lachaise. His suc-
cessor in the control of the Parisian house was
his eldest son, Baron Alphonse Rothschild. He
had a much easier task than his father, and did
not need to strain his powers very much
in increasing the fortune of the family; it
grew almost automatically. Hence financial
operations did not claim so much of the
son's time as they had done in the case of
the father, who, as long as he lived, con-
trolled the business alone and gave his son
full liberty to enjoy his youth, to travel, to
educate himself, and to cultivate the thousand
pleasures which his great means put within his
reach.

Baron Alphonse was a zealous patron of art ;
his artistic judgment was authoritative, and
always evinced a thorough knowledge. His
artistic collections and his superbly furnished
rooms were one of the sights of Paris. He was
also not insensible to the demands of the age
and the social duties of his class. He was the

205

The Romance of the Rothschilds

first in France to build homes for the workers,
and he spent more than ten million francs on
this object.

The French regarded Baron Alphonse
Rothschild as entirely one of themselves; they
never reproached him, as they had reproached
his father, with living half a century in France
without becoming really French. During the
siege of Paris the Rothschild mansion, the
Chateau Ferrieres, was the chief centre of the
Germans, and it says much for the international
esteem which the name Rothschild enjoyed that
the Germans, hostile troops, regarded the
chateau as extra-territorial and carefully pro-
tected it from plunder or damage. It was in
the Rothschild chateau that Jules Favre visited
Bismarck, and the "iron Chancellor" dictated
the colossal sum of the war indemnity—
5,ooo,ocK),ooo francs. In finding this enormous
sum, Baron Alphonse gave proof of his French
patriotism and his willingness to sacrifice. For
months together he worked night and day at the
head of his officials in the task of finding the
immense sum, and it was due to him that it was
206

Baron James Rothschild

at the disposal of the Government at the proper
time.

In person Baron Alphonse was, like all the
Rothschilds, peculiar in many ways. He was,
for instance, extremely superstitious, and he had
an almost comical dread of the number thirteen.
He would not enter his palace in the Rue St.
George, which was made number thirteen at
some alteration of numbers in the street, until
the municipal authorities again changed the
number.

The power and prestige of the Parisian house
of the Rothschilds diminished somewhat during
the later years of the life of Baron Alphonse.
This was due to changes in the general econo-
mic conditions which were bound to put an end
to the unassailable power of the Rothschilds.
The firm still plays a very considerable part in
the financial life of France, but its power is not
as absolute as it was in the time of Baron James.
It now rarely engages in large financial transac-
tions. It has not the energy for such operations,
as Baron James had.

Baron Alphonse Rothschild died in the year

207

The Romance of the Rothschilds

1905, without leaving a male heir. His younger
brother Gustave had now to assume the control
of the bank, but he was already advanced in
years and unequal to the task ; nor was his other
brother Edmund much better qualified. The
choice therefore fell on younger members of
the family. Baron Gustave's son, Robert
Philip, and Baron Edmund's two sons, James
and Maurice, were put at the head of the
business. But the vast machinery did not, even
under their guidance, sustain the activity it had
had under Baron James, whose life marked the
golden age of the Parisian house. He has now
rested in Pere Lachaise for nearly half a
century ; but the Parisian firm has not yet found
a second Baron James.

208

THE ROTHSCHILDS AT NAPLES

No city in the world has been so generously
enriched with natural beauty, with all the
marvels of earthly splendour, as the " Napoli
la bella" of the Italians. Before it lies the
unending, velvet-like blue sea, breaking the
rays of the sun into millions of sparkling gold
coins with the ceaseless ruffle of its waves.
Behind it is the great, fire-breathing volcano,
rearing its smoke-crowned head, and at times
pouring streams of devastating gold, which
spread like serpents of destruction over the
country, from its awful jaws. There, at the
foot of Vesuvius, Pompeii and Herculaneum
sleep their age-long sleep, with all their petri-
fied treasures; while the glorious blue of the
island of Capri, with all its wonders, lights
the distant horizon. Nor does this exhaust the
marvels of Naples. All round it is a garland

o 209

The Romance of the Rothschilds

of laurel-woods, of lemon and orange groves
in bloom ; the air is full of the intoxicating per-
fume of the flowers of Sorrento, Amalfi, and
Posilippo; and the deep blue dome of the
heavens gracefully arches the wonderful pano-
rama. Nature has scattered the symbolic gold
of her sunshine with prodigal hand over the
city, gilding even the dilapidated huts of the
poor; and she has been just as parsimonious in
the scattering of the material gold that men
covet and treasure.

It was not, however, the beauty of Italy that
moved the Rothschilds in the misty north to
decide, in a council of the five brothers, that
one of their number should go to conquer the
country. They had calculated on paper, with
the greatest care and thoroughness, what
material results they might attain in a land so
rich in treasure, yet divided into small States
whose finances were in a worse condition than
any others in Europe. They did not seek to
realise some poetic dream, but they wanted a
new field for the spread of their business, and,
as they concluded that Italy was a promising
210

The Rothschilds at Naples

country in this respect, they decided to create
a centre there.

The only question that remained was, which
of the five brothers should be sent on the ex-
pedition. Maier Amschel's eldest son, Anselm,
had already entered upon his inheritance, and
assumed control of the Frankfort house.
Nathan had gone to London and won un-
bounded respect for the name of Rothschild in
misty Albion. Solomon had introduced the
work of the family into the imperial city on the
Danube. Even the youngest of the brothers,
James, had already settled in Paris and
founded an independent establishment. The
only one who had as yet no fixed residence, and
worked alternately at Frankfort, Berlin, and
Hamburg, was Karl — the fourth son of Maier
Amschel — who was no more than an agent of
the Frankfort or the London house. He was
now selected to carry the fame and power of
the Rothschilds to the south.

Karl Rothschild had hitherto been chiefly
engaged, like his brothers, in floating the State-
loans which they undertook. He had not yet
o 2 211

The Romance of the Rothschilds

done any business on his own account, and had
generally been engaged in Prussia as a pleni-
potentiary of the Frankfort branch. At that
time financial operations of this nature were
somewhat uncertain, and had to be carried out
with great care. The first large transaction
with Prussia fell in the year 1816, when the
country urgently needed a few millions to
enable it to discharge its older debts. The
Frankfort branch of the Rothschilds, which
had frequently made advances to the Prussian
Government out of the English subsidies in
Napoleonic times, decided to find the required
money. The loan was to amount to about a
million sterling, and Karl demanded a com-
mission of two per cent, for the Frankfort
house. He had every confidence in his ability
to carry the business through, as he believed
that he could easily dispose of the bonds of the
new loan in Holland.

At that time Karl was excessively anxious and
prudent in money matters, as any careful busi-
ness man is when the embarks on large trans-
actions for the first time. Though he regarded
212

The Rothschilds at Naples

the loan as thoroughly sound, he did not wish
to involve the capital of the Rothschilds them-
selves to the full extent of it, and he therefore
sought to interest the Amsterdam money-
market in the operation. But the Dutch
Government needed this market entirely to
cover its own financial claims, and would not
allow the loans of foreign States to be placed
in their capital.

Karl Rothschild then thought of the Prince
of Hesse, who already held Prussian bonds for
more than £143,000, in connection with an
earlier loan, and, when Karl came to Cassel,
he proved willing to undertake the loan. He
did eventually find the money, and the fact was
regarded with great satisfaction in Prussia,
since it would prevent the issue of the new
loan from depreciating the value of the older
Prussian bonds. This was Karl's first large
transaction. It showed that the youngest of
the Rothschilds had his share of prudence and
intelligence, even if it betrayed, at the same
time, that his education had not been so good
as it might have been. Karl was then twenty-

213

The Romance of the Rothschilds

eight years old, yet in the papers relating to
the transaction we find a letter written by him
which swarms with mistakes in spelling. It
contains such sentences as the following—

" I beg you to have it ready as soon as pos-
sible, if it cant be done at once, must be post-
poned until mine or my brother his arival."

The elder brother of whom he speaks in this
letter is Anselm, of Frankfort, who wanted
Karl, fifteen years his junior, to make his first
experiments in business under his care. He
wished to teach him the thousand and one
tricks of business life and initiate him to all the
intrigues and stratagems which were required
in negotiating State-loans. It was a kind of
apprenticeship, during which Karl was to learn
thoroughly the trade of his father and brothers.
When it was over the brothers, always loyal to
the wishes of the dead father, made Karl a
"journeyman" in the profession and sent him
to Italy to work independently.

It was the year 1822 when the fourth son of

1 I have reproduced the errors as literally as possible in
English.— Trans.

214

The Rothschilds at Naples

Maier Amschel established the Italian branch
of the Rothschild firm at Naples. Money was
very scarce in Italy at the time, in spite of all
its treasures. The art of making gold had
made more headway in every other part of the
civilised world than in Italy, where the soil was
so rich in superstition and all kinds of occult
science. Mysterious alchemists still brooded
over the flames in their secret chambers, and the
stuffed salamander, to which the alchemists
ascribed a supernatural power, hung over the
furnace. The fluid seethed in the thick-bellied
retorts and serpentine vessels, and the whale-
bone saws, the winding tubes, and the steam-
ing pots all waited for the man-made gold to
issue from the magical brew. The mysterious
powder was extracted day by day from these
phials in the secret laboratories of the alchem-
ists, and by the light of ancient lamps, which
hung on chains from the ceiling, the powder
was committed to the crucibles on the furnaces.
All the magic was fruitless, however, and
the secret of the alchemist was not discovered
in Italy. Then a quiet German Jew made his

215

The Romance of the Rothschilds

way down from the misty north and solved the
problem. He made the coveted gold for the
Italians. Genuine gold coins rolled from his
hands — gold coins with the papal keys on them
— and their genuineness was best attested by
the fact that the Holy Father himself accepted
and hoarded them, and he heaped honours on
the smiling young Jew whose hands were ever
full of these gold coins. Karl Rothschild's
gold rang just as true in the Vatican as in the
treasuries of the small Italian States, and they
were very welcome guests everywhere.

At that time Italy was, like Germany, an
agglomeration of small States. But it was pre-
cisely this political division that represented
Rothschild's capital and afforded him a splen-
did opportunity for business. When Karl
chose Naples for his residence, he had no
intention of confining his operations to the
kingdom of Naples, but intended to spread
them over the whole of Italy. There was not a
very brisk commercial life in Naples at that
time, but the beautiful city was the largest in
the country, and there was a prospect of it
216

The Rothschilds at Naples

becoming, with a little effort and skill on the
part of the Rothschilds, the centre from which
they could extend their hands to any part of
Italy.

Karl did not intend to concern himself with
the business life of Naples as such. He rarely
entered into undertakings with private indi-
viduals. His idea was rather to use the enor-
mous capital and excellent connections of the
Rothschilds for the organisation of State-loans,
as the other four Rothschilds had done so suc-
cessfully in four other large European cities.
Italy, the small States of which had perpetually
to contend against scarcity of money in con-
sequence of the bad financial policy they
followed, seemed to be particularly suitable
for such transactions. It was therefore quite
natural that, very shortly after his settlement
in Naples, Karl Rothschild became the almost
absolute master of the various Italian Ex-
changes and the decisive factor in the province
of State finance from the Alps to Naples.

In attaining this position he had a compara-
tively easy task. Quite apart from the work

217

The Romance of the Rothschilds

of their father, his brothers had already won a
world-wide respect for the name of Rothschild,
and the name alone sufficed to smooth his ways
in the south. And in Italy it was precisely the
Rothschilds that were wanted : their excellent
connections, their talent for organisation, and
— their money. The State coffers were empty
throughout Italy, and even the Vatican had to
contend with an eternal lack of money. The
finances of Rome had fallen into a lamentable
position under the extravagant administration
of Pius VI, and the value of securities had, in
view of the lack of funds to cover them, fallen
to an unprecedented depth — five per cent.
The papal States could not contract any more
loans even at usurious rates. The situation
had not improved under Pius VII; indeed,
during his administration the taxes on salt had
been increased and the lottery introduced, as
he had absolutely no other means to raise the
money that he needed. It was all of no avail,
and the economy of the State had to contend
with ever-increasing difficulties.

On January i, 1821, the sum that had to be
218

The Rothschilds at Naples

paid out annually on bonds in the kingdom of
Naples amounted to nearly four million Nea-
politan ducats. It was therefore impossible to
postpone any longer the reform of the finances,
and on May 26, 1821, the King of Naples
separated the financial affairs of Sicily from
those of Naples, and burdened Sicily with a
loan of four and a half million ducats, which
Karl Rothschild found, and the interest on
which was to be paid to the Paris house. This
was Karl's debut on Italian soil. He had not
yet opened a banking-house at Naples, but had
negotiated with the Neapolitan Government
as the plenipotentiary of his brothers. The
loan which he concluded, on very good terms,
brought to a head his determination to estab-
lish a banking-house at the foot of Vesuvius.
He then travelled over Italy, in order, like a
careful business-man, to collect information as
to the financial situation in all parts in which
he trusted to work in the future. His experi-
ences and information must have satisfied him,
as he opened his bank at Naples in the follow-
ing year. Immediately afterwards the Govern-

219

The Romance of the Rothschilds

ment turned to him for a loan, and with the
help of this it extricated itself from its more
pressing difficulties.

Karl Rothschild was well informed as to the
financial condition of Naples and knew that
the kingdom had to contend constantly with
money difficulties. He also knew, however,
that the reason for this was not that the
treasury could not meet current and extra-
ordinary expenses; it was simply due to the
fact that the old burdens were too oppressive,
on the one hand, and there were grave blunders
in the fiscal administration of the country on
the other. The amount of the loan was sixteen
million ducats, which Karl Rothschild paid
into the coffers of the State. These sixteen
millions, however, by no means sufficed to put
in perfect order the lamentable finances of the
country. A new loan was needed, and the
Government again applied to the Neapolitan
house of the Rothschilds.

Karl now perceived for the first time the
great influence he had in the kingdom. He
had not yet been two years in the country, yet
220

The Rothschilds at Naples

he wielded so great a power that his wish was
taken as a command. And he now proposed
to have his wish carried out. He was an
intimate friend of the Cavaliere de Medici, a
distinguished Italian noble of fine taste and
excellent qualities, who was not only a con-
noisseur in art but a good financier. But the
Neapolitan Government had banished the
Cavaliere for political reasons, and he was then
living in exile at Florence. Rothschild did not
forget his friend. It may be that he particularly
felt the absence of his friend in Naples, where
he was still virtually a stranger and needed
social support; in any case, he made it a strict
condition of his floating the new loan that the
Cavaliere de Medici should be recalled from
banishment. He knew his friend's ability in
the province of finance ; and he not only wished
to have him once more in his circle, but to
attach him more closely to his person until he
could find an opportunity to put him in a
position which would be advantageous to the
Cavaliere himself and afford a certain security
to Rothschild.

221

The Romance of the Rothschilds

The son of the Frankfort ghetto had already,
hardly a generation since old Maier Amschel
had sold his modest wares in Jew Street, at-
tained such a power that he could dictate terms
to the Government of a country to which he had
been a total stranger a few years before, and the
Government had no alternative but to obey.

The second loan that Karl Rothschild —
now Baron Karl Rothschild — negotiated for
the Neapolitan treasury amounted to twenty
million ducats. Yet these immense rolls of
gold did not remain long in the impoverished
coffers of the State. In less than a year they
were empty once more, and there was another
appeal to Rothschild for assistance. Karl now
attached fresh conditions to the loan. He
openly declared that he had no confidence in
the administration of the country's finances,
and that he would not think of undertaking the
new loan unless he was afforded a proportion-
ate guarantee that the fiscal policy of the State
would be entirely changed. He would, more-
over, not be satisfied with a mere verbal pro-
mise to that effect ; he demanded that the actual
222

The Rothschilds at Naples

minister of finance should be relieved of his
office and the Cavaliere de Medici should be
substituted for him. He felt that nothing but
the co-operation of his friend could give him a
satisfactory guarantee that the money matters
of the kingdom would at length be established
on a safe footing.

The kingdom of Naples accepted the con-
dition. The Cavaliere de Medici was made
minister of finance, within a year of his return
from exile, solely because Karl Rothschild
pressed for the appointment. The third loan
which he then negotiated amounted to about
,£2,000,000, but from that date the Cavaliere de
Medici controlled the financial administration
of Naples, and we may take it for granted
that he did nothing that was inacceptable to
Rothschild.

In the meantime Baron Rothschild had
begun to regulate the financial condition of the
other Italian States. Amongst other things the
Jewish financier liquidated a loan for the
supreme head of Christendom, the Bishop of
Rome. The papal Government had in 1834,

223

The Romance of the Rothschilds

under the rule of Gregory XVI of the Cap-
pellari family, converted a five per cent. State-
loan into three per cent, bonds. This earlier
five per cent, loan had originally been nego-
tiated by the Rothschilds in conjunction with
the Italian banking business of Torlonia for
the papal States. The papal treasurer, how-
ever, Cardinal Tosti, now wished to have the
loan floated in Paris, apart from the Roths-
childs, and he travelled to that city in order
to enter into personal relations with the
Parisian bankers without consulting the Roths-
childs. No doubt he did this for sectarian
reasons, but it is possible that the cardinal
thought he would obtain better conditions
if he put others in competition with the
Rothschilds.

At that time the Parisian bankers were begin-
ning to organise very vigorously for a common
attack upon the Rothschilds, who had suc-
ceeded in excluding all other financiers from
the business of floating State-loans. This had
not only led to a great deal of bitterness in
French banking circles, among what were
224

The Rothschilds at Naples

known as "the notabilities of finance," but it
was felt as a great humiliation. Not one of
them would have dared to resist the Roths-
childs singlehanded, but they hoped that a
combined action would enable them to oust
their opponents.

The six leading banking-houses at Paris —
Hagermann, Andre et Cottier, Fould et
Oppenheim, Blanc, Collier et Cie, Odier et
Cie, and Wells et Cie — formed an alliance for
the purpose of breaking the autocratic power
of the Rothschilds. In arranging the first
French loan to the Sardinian Government,
which they managed on the model of the City
of Paris Lottery, these allied bankers won a
first small success; they snatched the business
out of the hands of the Rothschilds and under-
took it themselves. The lion's share of the
work fell to Hagermann, who had formerly
had a bank at Genoa and been regarded as
one of the leading bankers in that city. During
the time when he was in business at Genoa
Hagermann was intimate with the Sardinian
minister Caccia, and, through him, with the
p 225

The Romance of the Rothschilds

Parisian banking firm Caccia, to which the
minister had first offered the loan. The
Parisian Caccia, however, had too little in-
fluence to undertake the important business
offered to him by his brother, but he succeeded
in getting it placed in the hands of Hagermann
and his associates.

The Rothschilds, who had never up to the
present1 entertained the idea that competition
would be of any avail against them, now felt
the defeat so much that they wanted to avenge
it, and they swore to spoil the business of the
allies in future, or at least to hamper it in
every way they could. They at once drew up
their plan of campaign. They had sufficient
means and connections to enable them to bring
about artificially a considerable fall in the
price of Parisian securities. This fall in
Parisian stock brought about a fall in the rate
of the Sardinian bonds, so that they quickly
fell far below the price at which the associated
Parisian bankers had accepted them.

This conduct of the Rothschilds sufficed to
inspire the bankers with prudence and induce
226

The Rothschildsvat Naples

them to abandon the idea of further struggle
against the Rothschilds. When, however, they
learned Cardinal Tosti's plan — to convert the
five per cent, loan into a three per cent. — Andre
and Cottier insisted that it was an excellent
opportunity for business, and succeeded in in-
ducing their associates to undertake it. They
sent a confidential agent of the allies to the
papal treasurer at Rome, for the purpose of
discussing the details with him. They in-
structed their plenipotentiary to get the loan,
if possible, at a rate of seventy francs.

The agent of the bankers, however, had
another, and not less stringent, instruction; he
was to act throughout the negotiations as a
simple intermediary and on no account to
reveal the names of his principals. This he
did ; the negotiations were all conducted in the
name of " the associated bankers of Paris," but
the names of the bankers were not mentioned.
He promised to do so when the contract was
concluded, and Cardinal Tosti was to be free
to withdraw from the contract if he thought

them unworthy of confidence.

r 3 227

The Romance of the Rothschilds

The plenipotentiary of the six bankers had
proceeded so far with the negotiations that he
considered the business to be as good as settled.
They were approaching the final stage, when,
in spite of all their precautions, the Rothschilds
learned of the matter. The mere presence of
the Parisian agent at Rome, which was at once
communicated to Baron Karl, seemed to him
a suspicious circumstance, and, once his sus-
picions were aroused, he did not find it diffi-
cult to learn the facts. The Rothschilds had at
that time influential friends in every Govern-
ment and every country, and they did not leave
unrewarded the services of these friends.

Karl at once went to Rome in order to make
a personal inquiry into the situation. When
he became fully acquainted with it, he visited
Cardinal Tosti and showed him the original
contract of the earlier five per cent. loan. The
Rothschilds had undertaken this loan in
conjunction with the Torlonia firm, and the
contract signed in regard to it contained a con-
dition which had hitherto been kept secret; it
stipulated that the Holy See was not to
228

The Rothschilds at Naples

approach any other firm about a new loan with-
out first informing the Rothschilds and giving
it the preference if it offered equally favour-
able conditions. The earlier loan had been
arranged before Cardinal Tosti was put in
charge of the papal treasury, and he was there-
fore unaware of the secret condition which
Baron Karl brought to his notice. The inter-
vention meant neither more nor less than that
the Rothschild firm was going to use the Veto
which the contract granted it.

The papal treasurer was now compelled to
break off his negotiations with the agent of the
Parisian bankers. It was a matter of course
that, if the Rothschilds thought the business
good enough, they would not let it pass out of
their hands. On the other hand, it was pos-
sible for the Parisian bankers to make the loan
not worth the acceptance of the Rothschilds by
lowering their terms, and they declared that
they were prepared to do so if a reasonable
compromise were not effected. A: that the
Rothschilds contented themselves with a moral
victory, entered into friendly correspondence

229

The Romance of the Rothschilds

with the Parisian bankers, and came to an
agreement to undertake the loan in co-operation
with them.

The Papal States and the kingdom of
Naples did other business with the Rothschilds
besides contracting loans, and Baron Karl
figured in the accounts of all the small Italian
States. He advanced loans, for instance, to
the Grand Duchies of Tuscany and Lucca
several times ; the total sum amounted to about
£400,000.

The then kingdom of Sardinia, which had
five million inhabitants and a national debt of
about £16,000,000, had no less than thirteen
loans between 1848 and 1855, amounting in all
to about £22,000,000, the yearly interest on
which was more than a million sterling. Two
of these loans were negotiated by the Roths-
childs : a loan of £3,200,000 in the year 1850,
and a loan of the nominal value of £2,680,000
in 1853.

As a recognition of the services which the
Rothschilds rendered to the various Italian
States, either in floating loans or making
230

The Rothschilds at Naples

advances, the head of the Neapolitan firm
received a number of decorations and other
distinctions, even the Pope decorating his
breast with the Order of the Redeemer. After
the last revolution Baron Karl felt that he had
had enough of life in Italy, and he returned
with his family to his native city of Frankfort.
As long as he had lived in sunny Naples, his
salon had been the chief centre of the best
Neapolitan society. Quite apart from the
Rothschild millions, there was an attraction in
Baroness Adelheid, Karl's wife. She was a
daughter of the wealthy German family Hertz,
an aunt of the well-known German poet, Paul
Heyse; and she was the soul of her husband's
salon.

A Neapolitan journalist writes as follows
about her in the year 1850 —

" If ever a woman was called to write the
memoirs of her time, it is certainly the case
with Baroness Adelheid, who has had the good
fortune of observing the most distinguished
men in Europe in her house during quarter of
a century. She knows every one of the men

231

The Romance of the Rothschilds

who are making history. One may doubt, how-
ever, if her esteem of men has been much
increased during that period. The gifted lady
was more than once compelled to suppress an
ironical smile when the highest dignitaries, who
even thought that they were greater than they
really were, bent respectfully before her and
were most assiduous in making her the most
graceful compliments and saying pretty things
to her, without openly confessing the power of
money, which was in reality the god to which
they did homage. Would it be surprising if,
in such circumstances, the mistress of the
Rothschild house entertained a great contempt
for the world? She was, in fact, only saved
from this by her deep religious sentiment and
the nobility of her nature."

Baroness Adelheid owed her great reputa-
tion— for such she assuredly had — for the most
part to her devoted philanthropy ; in her case it
was certainly not the love of display, but the
sincere feeling of a noble heart, that impelled
her to acts of charity. As long as she lived at

Naples she was conspicuous for philanthropic
232

The Rothschilds at Naples

conduct, and deeply conscious of her religious
duty to devote part of her means to the relief
of the poor. She did not, moreover, forget the
poor in her own distant country. Even while
she lingered by the azure gulf she used con-
stantly to send alms for the poor of Frankfort.
Whenever she travelled to that city, she had
hundreds of garments made by the various
women's societies which devote themselves to
the clothing of the poor at Frankfort, Berlin,
and Hamburg. She bought up whole shops,
and thus at one stroke promoted industry and
helped the destitute.

She never forgot Naples, and her charity
extended to the whole of the surrounding
country. There is still to be seen at Naples
the Asilo Rothschild : a home for the protection
of children and for foundlings, which Baroness
Adelheid founded in 1846 at a cost of nearly
£5000. This was, moreover, not the only
institution she founded. She was equally
zealous to provide for infirm old men and
widows, and many a poor family in Naples
to-day still draws money from the interest of

233

The Romance of the Rothschilds

the fund which Baroness Adelheid devoted to
that purpose half a century ago.

The obituary notices of the baroness speak
of her as a woman of a type that is dying out.
In her mind ideas of feminine emancipation
never displaced the womanly virtues, even
when she was misunderstood at times and her
gifts abused. She had a remarkable gift of
bringing relief to the distressed by her inimi-
table amiability, of making her gifts acceptable,
and of inspiring courage and confidence in the
dispirited. She never waited for the sufferer to
come to her, but she herself sought out the
poor, in the hovel no less than in the homes of
impoverished gentlefolk. She had a kindly
penetrating eye for the poverty that hid itself
from the world under a cloak of seeming
prosperity. It was these people whom she
chiefly loved to assist.

The baroness was at the same time a pro-
tectress of art, of science, and of genius. She
had a passion for all that was noble, beautiful
and exalted, wherever it was found. " It was,"
says the Neapolitan writer, " as if all the graces
234

The Rothschilds at Naples

hovered about her wherever she was." With
all her gifts of heart and character she was at
times very witty and brilliant. She had a real
enthusiasm for art, and a wonderfully clear and
critical judgment of everything connected with
it. Well educated and intelligent as she was,
she never forgot her Jewish origin, and was
never, in any part of Catholic Italy, exposed
to any unpleasantness on that account, although
the Jews were very much oppressed in the
country at the time. Even cardinals ignored
her nationality. She not only supported her
co-religionists, but often took their side in some
controversy. Once, for instance, she obtained
an audience from Pius IX, and expressed her-
self fearlessly to the Pope in regard to the
persecution which Cardinal della Gengha and
other powerful cardinals inflicted on the poor
inmates of the Roman ghetto. The little
Jewess bitterly reproached the successor of
Peter, in the handsome chambers of the
Vatican, and declared that such barbarism was
a disgrace to the nineteenth century, and that
he, the Pope, ought not to allow it, since he

235

The Romance of the Rothschilds

must know from his own experience how
painful it is to see one's co-religionists per-
secuted. If it pained the Pope to see the
faithful oppressed in Ireland, it was no less
painful to her to see the Jews ill-treated at
Rome.

Baroness Adelheid died in the year 1853 at
the age of fifty-three. She was buried in her
own soil, at Frankfort, and two years after-
wards Baron Karl, who was in his sixty-eighth
year, followed her to the grave. He also was
buried at Frankfort, where husband and wife
sleep together in the Jewish cemetery under the
simple monument of Carrara marble, which
bears the words : " Sleep : Baroness Adelheid
and Baron Karl Rothschild."

Four children — a daughter and three sons-
survived the parents. The daughter, Charlotte,
married Lionel Rothschild of London, and the
brothers also chose their spouses within the
family — Maier Karl, the eldest, married his
sister-in-law Louisa, the sister of Baron Lionel.
His brother, Adolf Karl, married a daughter
of the Vienna family, Julia, the granddaughter
236

The Rothschilds at Naples

of Baron Solomon. The youngest son,
Wilhelm Karl, married Julia's sister Mathilda.
After the death of their parents all the three
sons moved to Frankfort, as none of them
regarded Italy as a favourable field for the
great financial operations of their house. Their
father had ceased to do business in Naples
some months before he died, and they con-
cluded that it would be better to abandon it.
When they reached Frankfort, Baron Anselm,
the eldest son of Maier Amschel, was an infirm
and failing old man. Eighty-two years of toil
and strain weighed heavily on him, and he
merely awaited the hour when he could transfer
the burden to younger shoulders. It had now
come. He had no children, and therefore
relied on his nephews. The eldest of them,
Baron Maier Karl, was thirty-five years old,
and was put at the head of the Frankfort
branch, which old Maier Amschel himself had
once controlled. He now took the place of
the grandfather and filled it very ably. He had
such a fine talent for business, and was so
reliable and firm, that the aged Baron Anselm

237

The Romance of the Rothschilds

was quite content to leave the reins to him and
retire. The Neapolitan branch of the firm was
thus blended with the Frankfort branch, and
the title " Neapolitan " disappeared. The
further history of the Neapolitan Rothschilds
is to be read in the ledgers of the Frankfort
house.

This Neapolitan activity of the Rothschilds
had been no more than an episode. Like the
ancient Norsemen, they had descended for the
conquest of Italy and had soon become tired
of their acquisition. The geographical situa-
tion— the difficulty and slowness of communica-
tion from Naples — prevented them from main-
taining the close connection with the other
branches of the house which it was an essential
part of their financial policy to maintain. The
Apennines and the Alps separated them from
Paris, London, Vienna and Frankfort, and, as
there was at that time no telegraph to distant
regions in communication, they felt that they
were too isolated. Couriers and pigeons could
do little to lessen the inconvenience of the
distance. That is the sole reason for the

238

The Rothschilds at Naples

Rothschilds abandoning Naples. Had the
telegraph been invented a few years earlier, it
is possible that the Neapolitan branch would
have become one of the strongest of the five.
As it was, they quitted the shores of the beau-
tiful bay, and they now only return occasion-
ally for a few weeks' rest, as other travellers
do, to the city where their father had been
powerful enough to convert an exile into an
important minister.

239

VI

THE FRANKFORT HOUSE

AFTER the death of Maier Amschel his eldest
son, Anselm Maier, became the head of the
Frankfort house. Anselm was a business man
in body and soul ; that was his chief character-
istic. In point of fact, however, he had also
the advantage of that important element of
commercial life, luck, and this made his work
considerably easier. He did not, of course,
rely blindly on his luck, but was always very
prudent and cautious, and never based his
calculations on the favour of fortune. His
concern was rather to grasp the favourable
moments which arise in political and com-
mercial life. He followed the course of events
with close attention, and endeavoured to take
every possible advantage of political and
economic conditions. That was his first prin-
ciple in business, and his luck consisted in the
240

The Frankfort House

fact that events afforded him so many oppor-
tunities for the application of his principle.

Anselm Maier Rothschild very closely
resembled his mother in character, cast of mind,
and simple ways of life. He maintained this
plainness throughout life, even when honours
and dignities had been heaped upon him. Less
than a year after he had undertaken the control
of the Frankfort bank he received the title of
Royal Prussian Privy Commercial Councillor,
and three years afterwards, in 1816, he was
raised to the Austrian nobility with his brothers.
The year 1820 brought him a new title; he was
made Bavarian Consul for the city of Frankfort
and official court-banker.

Old Maier Amschel, who had been put to
rest in the Jewish cemetery scarcely ten years
before, can hardly have dreamed that his sons
would become barons in so short a time.
Anselm, however, set no store by his title of
baron of the Austrian Empire. He was inter-
ested in nothing but business, and took no
pleasure in anything but large financial opera-
tions. As the eldest of the five brothers, he
Q 241

The Romance of the Rothschilds

often expressed a concern lest the later genera-
tion, seduced by a desire for titles and dignities,
display and luxury, should depart more and
more from the spirit of the elders. He some-
times bitterly reproached his brothers, espe-
cially Karl, who was very partial to display.
The Neapolitan Rothschild once spoke in
Anselm's presence of his sons as "the young
barons."

" Don't talk to me of young barons," said
Anselm angrily. " Drop the expression ! Take
care rather that your young dignitaries become
honest and hard-working business men; their
title will never bring them in a farthing."

He cared nothing for external things, spent
his early years in an intense application to
work, and was consequently deficient in educa-
tion. In later years he tried to improve himself
in history and languages, and even took to
gymnastics, but when any one attempted to
praise his riding he promptly turned his back
on the flatterer. He spoke French and German
badly, as he had been compelled to learn these
languages in middle age; and, in fact, his
242

The Frankfort House

choice of expressions was not much better in
German. On the artistic side he was interested
in antique metal-work and small sculpture, and
he often passed very sound opinions on
pictures. His chief interest, however, was in
his garden, where he loved to walk. All these
peculiarities and faults he retained until his
eighth decade of life : an interesting example
of a type that is now dying out.

He was eccentric throughout life, and never
really enjoyed his great fortune. A young
Parisian who was once entertained by him said
to him, when he was leaving and wished to
thank him for his hospitality —

"Ah, if one only had the good fortune to
change places with you, Herr Baron."

A shadow came over the face of Anselm
Rothschild, and he replied, gravely and
thoughtfully —

" My dear friend, no one would be more
willing to effect the exchange than I, if it were
possible. Listen to me. You admire my
horses. It is certainly a great pleasure to me
to ride, but my physicians have long forbidden
Q* 243

The Romance of the Rothschilds

me to do so ; my stomach and digestive organs
will not permit it. As to the pleasures of the
table, I generally pay for them with very
painful consequences when at any time I have
yielded to my inclinations. I am completely
insensitive to the smell of flowers, and so am
deprived myself of the great pleasure which
my conservatories give to other people. My
business activity prevents me from appreciating
properly the pictures and statues that adorn my
house. The one creature that I ever really
loved I have never been able to call mine. In
a word, all that I get out of wealth is — the
duty of preserving and increasing it. Now, tell
me, are you still anxious to change places with
me?"

These sombre words give us a glimpse of
the soul of Baron Anselm. He was not the
master, but the slave, of his vast fortune. And
what must have been particularly painful for
him was the consciousness that he was not his
own master even in his inmost experiences, to
say nothing of his professional duties. He had

to sacrifice his life and every enjoyment, even
244

BARON ANSELM MAIEIt HOTHSCHILI).

The Frankfort House

love, to the pitiless god Mammon. The remark
that he could never call his own the one being
whom he had ever loved exposes his wound to
us. Even in his grey, and apparently blood-
less, old age this wound, inflicted by love, was
never healed. He had loved with all the ardour
of his young heart in early life, and had been
compelled by his father to sacrifice his passion.
It is not known who it was that thus won the
heart of the later head of the Frankfort house :
the family chronicles are silent on that point.
.We may suppose that the maiden belonged to
some poor Jewish family, otherwise the father
would not have been so sternly opposed.

Thus the first victim of Maier Amschel's
domestic and matrimonial policy was his eldest
son, whose happiness he sacrificed to the
fortune of the house. Anselm bowed to his
father's orders, and controlled his feelings in
the interest of the family. How much suffering
it cost him we can gather from the confession
in his old age, which shows how keenly he still
remembered the love of his youth.

At that time he was married to Eva Hanau,

245

The Romance of the Rothschilds

whom his father had chosen for him. No
children were born of this loveless marriage,
contracted in the interest of the family. It is
possible that the childlessness of his wife con-
tributed to the morose disposition of Baron
Anselm, whose home was never brightened
by the laughter of the young. He therefore
devoted himself entirely to business and passed
his life without knowing what real joy is.

A contemporary, who lived in the vicinity
of Baron Anselm and had good opportunity to
observe him, writes as follows —

" Maier Anselm von Rothschild is the eldest
of the European nabobs : a man of thoroughly
Oriental physiognomy, with old Hebrew ways
and habits. His hat is pushed back on to his
neck, his hair is white as snow, his expression
is, on the whole, one of candour, even when he
assumes a more cheerful expression if he
notices that he is observed. His coat is open,
as a rule, and does not rest neatly on the
shoulders, but falls negligently over them; his
hands are always in his trousers pockets, play-
ing with money. He generally goes on foot,
246

The Frankfort House

and gives money generously to every beggar
he meets — never less than a sixpence. He has
a strong feeling of philanthropy. The poorer
Jewish families of Frankfort live largely on
his benefactions, and he gave the greater part
of the money for the new Jewish hospital. In
times of great cold or after a fire he is always
ready to give large sums. When there is any
widespread 'distress, quite a crowd gathers in
the street in front of his bank.

" His house in the Fahrgasse has not an
impressive exterior, and a passing stranger
would never suspect that it was the residence
of the wealthiest business man in the world.
From a kind of superstition he still keeps his
offices in the house ; he feels that luck might
desert him if he left the house. There he sits
like a padishah among his clerks, on a raised
platform, his secretaries at his feet and his
clerks and agents bustling about. He gives his
opinion on everything in a few words. Being a
commercial genius of the first rank, he can
decide instantly on any offer, oral or written,
and, when once he has given his brief decision,

247

The Romance of the Rothschilds

nothing in the world will induce him to say
another word about the matter. No one is
ever allowed to speak privately to him about
business ; everything is discussed openly in the
office, as in the old Rhine courts.

" He observes the hours of business as
punctually as his clerks, and takes even less
relief than they; even when he goes to the
theatre, he is almost always called out because
some courier has arrived. In the same way he
is summoned from bed nearly every night to
read dispatches and perhaps send messages to
Vienna, Paris or London. He has a small desk
for the purpose beside his bed.

" He has a number of titles and decorations,
but as a rule only wears the ribbon of the Hesse
Court, and likes to be addressed simply as
' Herr Baron.' The diplomatists who are
accredited to Frankfort, and all who pass
through the city treat him with great distinction,
and great dinners are exchanged ; but as Roths-
child only eats kosher meat he does not at all
enjoy these banquets. This strict and sincere

adherence to the prescriptions of his religion
248

The Frankfort House

does him great credit; he is regarded as the
strictest Jew in Frankfort. I have never seen
any man so distressed, beat his breast so much
and implore the mercy of heaven, as Baron
Rothschild on the long day in the synagogue.
He often faints from the strain of the inter-
minable prayers and song, and strong-smelling
plants from his garden are then brought
and put under his nose to bring him round.
In earlier years he inflicted severe mortifica-
tion on himself in order to prevail upon
heaven to grant him a child, but it was of no
avail."

He was eighty-two years old when he died,
on December 6, 1855, working with great vigour
of mind until the end. Work and the exercise
of charity were the only things which gave him
pleasure. In his will he left £100,000 to the
Jewish community, to be distributed in small
sums, and gave other generous sums to the
poor. He used to say : " The poor on the
streets are my servants," and he never passed
a beggar without giving him something. He
had inherited this practice from his father. In

249

The Romance of the Rothschilds

his will he directed that the poor families of
Jew Street should receive weekly assistance.

An anonymous writer published the follow-
ing portrait of him after his death —

" Rothschild was, apart from his commercial
position, which we are unable to judge, a man
of penetrating intelligence and wonderful
knowledge of men. A remarkable instinct
enabled him to form the most accurate opinion
even of people whose cast of thought and intel-
lectual interests were very different from his
own. He could detect vanity, hypocrisy, and
inward emptiness under any veil of learning or
accomplishment. The solid nucleus was every-
thing to him, and he treated with straight and
sincere men on an equal footing. His know-
ledge of men often passed into disdain of men.
That is easily understood ; his sharp eye saw
how everybody paraded his particular quality
like a peacock's tail — the artist his fame, the
noble his genealogy, the orator his turns of
speech — sometimes with an obvious purpose,
sometimes with obvious pride, but generally for
the sake of some mean advantage.
250

The Frankfort House

" He had a great regard for the quiet and
modest man, who expressed his views candidly.
He regarded personal interest as the main-
spring of human conduct, yet did not question
that there were many with idealistic tempers.
That there were men here and there who had
high and sincere thoughts, apart from, or even
against their own interests, he was quite pre-
pared to admit, but he was not disposed to
regard such men as clever. His conversation
always seemed to be confiding, yet he con-
trived to give at the same time an impression
of reserve. The language spoken by the Jews
was particularly suitable for this equivocal ex-
pression. The speech they used in Frankfort
was understood by the Christian and was very
effective in his mouth; he was quite aware of
the somewhat droll character of his conversa-
tion, and made good use of it to convey truths
and corrections by way of a joke, when they
might have offended if put in plainer words.

' The stories that are told of him in this
connection all point to his possession of a level
head and penetrating discernment. Sometimes

251

The Romance of the Rothschilds

he would express his sense-impressions in very
simple speech. Once, when a large company
had gathered to do honour to Thorwaldsen,
who was passing through Frankfort, Rothschild
said, looking at him : ' You look so handsome,
sir, that one would think you had made your-
self.' Thorwaldsen had to admit that he had
never received a more original compliment. At
the time of the celebration of his golden
wedding it was observed that he showed great
skill and ease in saying an appropriate word of
thanks to each of the invited guests, the
humblest as well as the most distinguished.

' The old man was aristocratic only in the
sense that, without any pronounced pride, he
was conscious of his importance and power.
His power, indeed, was not slight, since it
secured for him in such abundance the things
that men prize. He was not at all unwilling
to talk about his humble beginning, his selling
of old coins in hotels, his travelling on foot
from office to office, his Friday evenings in the
old house in Jew Street, where the meal con-
sisted of white bread and roasted nuts; and he
252

The Frankfort House

treated with profound disdain the pride of
certain other parvenus. Political partisanship
was foreign to him, except in the sense that
business gave him a disposition in favour of the
principles of peace and stability. We remem-
ber hearing him say on one occasion : ' Men
want liberty, and are only willing to obey when
it is to their advantage; as a rule, however, it
is best for them to obey."

"Anselm von Rothschild gave away an
extraordinary amount of money in small sums.
There may be many who think otherwise,
because their own petitions were not answered
to their satisfaction, but that feeling often leads
to injustice. When begging letters for the
poor, or for contributions to institutions,
churches and other purposes, come, not by the
dozen, but by the hundred and even the thou-
sand, it is difficult for a man to distinguish
accurately, and impossible for him to have a
personal sympathy in every case. His philan-
thropic feeling, so reminiscent of ancient
Judaism, was based on a very plain philosophy,
the motto of which was, ' Live and let live.'

253

The Romance of the Rothschilds

He had in addition a tactful appreciation of
his position; he gave work to a great number,
and was always pleased to hear that some
industrious little man was getting on.

' The poor sustained a heavy loss in him,
and even the independent observer was forced
to admit that a remarkable personality passed
away in him. ... In intercourse with ladies
he maintained a sort of lively, but not tactless,
gallantry to the end of his life. . . . With all
his eccentricities and defects we recognised
in him a son of the mighty 'seventies, one of
those original characters that grow rarer every
day."

A good many anecdotes are told of Baron
Anselm, for, in spite of his eccentricity and
misanthropy, he liked wit and repartee. The
well-known humourist, Moritz Saphir, once
sent him a note couched in the following
terms —

" Herr Baron, send me a thousand gulden
and — forget me."

Baron Rothschild sent the money, with the
witty reply —
254

The Frankfort House

" I send herewith the sum you ask and—
have already forgotten you."

Saphir was very pleased to get the money
(about £80), but was annoyed that Rothschild
had capped his wit. He swore that he would
be avenged — with his own peculiar weapon, of
course. Rothschild had probably forgotten the
matter when he next met Saphir, who began to
lament his material cares, and described his
financial distress in such moving terms that the
baron, who was at the bottom a soft-hearted
man, began to sympathise with him.

" Come to my place to-morrow," he said,
"and I will give you five hundred gulden''
. Saphir, of course, went to his office on the
following morning, and the financier received
him with a friendly smile.

" So you have come for your money ? " he
said.

" No," replied Saphir, energetically.

"No?" Rothschild repeated, in great
surprise.

" No," Saphir repeated. " I have not come
for my money, baron, but for yours."

255

The Romance of the Rothschilds

Another anecdote shows how notorious were
the baron's generosity and philanthropy. He
went to Ems for the improvement of his health
in the summer of 1832, and lodged on the first
floor of the " Romerberg," where there was
likewise a young Uhlan officer who was also
a baron. Rothschild became very friendly with
him, and they one day went for a walk together
along the road from the baths to the " Four
Towers." Suddenly Rothschild interrupted
the conversation and stood still, as a poorly
dressed man appeared behind them, feeling in
his pockets in a somewhat nervous way. The
young Uhlan thought at first that it might be
an assassin or robber with intentions on Roths-
child's pockets or life, but he soon saw that the
forbidding stranger wanted to give the baron
something, possibly a begging letter, instead
of taking something from him. He therefore
allowed the man to put his note into Roths-
child's pocket, and the baron quietly resumed
the walk and the conversation.

The sharp corner of the letter in his pocket
behind was, however, a little inconvenient; he

256

The Frankfort House

took it out, glanced at the writing, and put it
in a better position, saying, " I know what it
is." Apparently he could tell by feeling it that
it was a begging letter. They continued their
walk along the road toward Coblentz, and did
not turn back until it was growing dusk. Then
a ragged fellow pounced on Rothschild from
the bushes and pressed against his breast some
object that he held in his hand. The young
officer was just about to throw himself on the
aggressor when he noticed that it was not a
pistol or a dagger that the man had in his hand,
but a begging letter; he was so excited that he
chose to deliver it in this extraordinary way.
Rothschild had remained as calm as usual ; he
was quite accustomed to receive letters in that
way.

A third anecdote runs that Baron Anselm
had invited a few friends to supper one warm
evening, and the window opposite to his chair
was left open. During dessert, just as they
were cutting up a pine-apple, a letter shot in
through the open window, to the astonishment
of his guests, and dropped on the baron's plate.
R 257

The Romance of the Rothschilds

The guests stared, but the baron quietly took
a piece of gold from his pocket, wrapped it in
the note (without reading the note), and flung
it half-way across the street. This original way
of practising charity amused his guests, but
Rothschild was not at ease until he knew that
his gift had reached its destination. He asked
his guests to allow him to leave them for a
moment, hurried to the window, and leaned out.
After looking round for some time, he returned
quietly to his seat, saying in a low tone of
voice : " Placed." He had " arranged a loan,"
and, though it would never be paid back, he
instinctively wished to make sure that it had
been safely negotiated.

As an orthodox Jew he observed the Sabbath
very strictly, but he had no objection to con-
cluding business and receiving money on such
days. At the time of the Aix Congress, for
instance, he had to receive a sum of £20,000
from the State Treasury on a Saturday evening,
and he turned up at the proper time. When
some wit, who noticed him, remarked that it
was the Sabbath, and that no orthodox Jew

258

The Frankfort House

should handle money or do business on that
day, Rothschild answered —

" One has not a chance every day of receiv-
ing £20,000"

Bismarck knew Baron Anselm very well, and
he gives us a very characteristic portrait of him
in a few words —

" He is a poor man in a palace. Childless
and a widower, deceived by all his people, even
his fine Frenchified or Anglicised nephews and
nieces, who will inherit his fortune, treat him
badly and ungratefully. He is, however, very
assiduous in business, in spite of all that."

Bismarck was very fond of Rothschild
stories, and was personally acquainted with
several members of the famous family. He
liked and esteemed them, and was equally
amused by their eccentricities and their shrewd
ways. He very often spoke of them at
banquets, in order to bring in some story about
them. One of these stories, which very well
illustrates the business principles of the Roths-
childs, was told by Bismarck at a dinner in the
following form.

R2 259

The Romance of the Rothschilds

At that time the head of an important grain
firm was negotiating the purchase of a large
quantity of wheat, and thought that the price
demanded by Baron Rothschild was excessive.
He bargained for a considerable time, and at
last exclaimed, in the heat of the struggle —

"A rich man like you, baron, does not need
to ask the highest price for his goods."

Baron Anselm laughed slyly at the corn-
merchant, and said —

" What ! Is my wheat of less value because
I am a rich man ? "

The reply is characteristic of the baron's
business principles. He counted every penny,
and acted as if his whole fortune depended on
his making another ten pounds or so out of his
wares. Bismarck, who recognised the character
of the Rothschilds in these anecdotes, used also
to tell a story about Prince Metternich and
Baron Anselm. Once, when Metternich re-
turned to his chateau at Johannisberg from
Frankfort, Rothschild made him a present of
six bottles of excellent Johannisberg. It was
the wine produced on Metternich's own estate,
260

The Frankfort House

and, instead of drinking it, he called his butler
and asked him how much a bottle it cost.

"A pound," was the reply.

"Very good," said the prince; "put these
bottles aside, and the next time Baron Roths-
child orders any of this wine, send them to him.
But add three guldens [five shillings] to the
price, as the wine will then be older."

Baron Anselm took great pride in his wines
and his cuisine. Just as he sought the good-
will of Metternich by making him a present of
costly wine, he once attempted to captivate the
Emperor William I by the marvels of his
cooking. According to Bismarck's account,
William I was passing through Frankfort, and
the Chancellor invited the monarch to dine
with him. When Baron Rothschild heard of
this, he sent the Emperor a request that he
might have the honour of finding him a dinner.
William genially consented, but added that he
had important matters to discuss with Bismarck,
and hoped to do this during the dinner. If
Rothschild did not mind this, he would be
pleased to dine at his house. He felt that this

261

The Romance of the Rothschilds

would put an end to the baron's project, but
Rothschild was not so easily put off. He
hastened to Bismarck and tried to persuade him
to abandon his imperial guest to him (the
baron), and join them at dinner. Bismarck said
that he would be pleased to do so, but it was
impossible.

:' Very well," said the baron, " if you will
not dine with me, let me at least provide the
dinner. I have one of the best cooks in
the country. He will do everything, and, if
I cannot be present, I shall at least have
the pleasure of feeling that I provided the
meal."

Nothing came of the matter, of course. But
years afterwards the Chancellor used to say
in a tone of resignation when he recalled the
episode —

" Unfortunately, I could not comply with
the baron's request. It was a pity, as his dinner
would certainly have been much better than
mine."

In view of the advanced age of Baron
Anselm it at length became necessary to
arrange for a successor in the control of the
262

The Frankfort House

Frankfort bank. Not having a son of his own,
he chose the son of his Neapolitan brother,
Karl, and the nephew lived with him in his later
years, in order to be initiated into the working
of the complicated machinery of the business.
This nephew, Baron Maier Karl, who was then
thirty-five years old, also inherited the uncle's
private fortune, which was estimated at over
two million sterling. Baron Maier Karl con-
ducted the business on the same lines as his
uncle had done. He had, from his long
sojourn in Italy, cultivated a fine taste for art,
but he was none the less devoted to business,
and his excellent qualities won for him so much
regard at Frankfort that he was elected a
member of the Reichstag of the North German
Alliance.

He was careful in all things to carry out the
wishes of the founder of the dynasty, Maier
Amschel, and married within the family, choos-
ing Louisa, the daughter of his uncle Nathan at
London. His own daughter — he had no son
— married a member of the family.

In his domestic life he was more fortunate
than his uncle had been, and was free from

263

The Romance of the Rothschilds

eccentricity. The love of art and of business
were happily reconciled in his nature, and he
took pleasure in social life. He held a quiet
and genial philosophy of life, and did not allow
himself to be disturbed by the conflicts and
excitement of social life. His idea of business
may be gathered from the reply he gave to a
clerk who once asked him what a man ought
to do to succeed on the Exchange —

' The thing is very simple," said Baron
Maier Karl; "we have merely to act as we do
when we are taking a cold bath. Quick in,
and quick out again."

He not only preached this maxim, but acted
on it, and owed the greater part of his successes
to it.

Yet his personal ability could not prevail
against the change in the political and economic
conditions. Frankfort, once the focus of com-
merce, gradually lost its importance, and the
Rothschild house declined with it. The
financial position of States had greatly im-
proved; they were no longer restricted to the
Rothschilds in seeking loans, as the large

company-banks now entered the field. Baron
264

The Frankfort House

Maier Karl was able to maintain, to some
extent, the position of the Frankfort house by
his own ability and exertions, but it lost its
cosmopolitan significance when he died.

He died in January 1887, in his sixty-eighth
year. After his death his brother William, who
was eight years younger than he, controlled the
business of the Frankfort house for a time, but
at his death his widow Mathilda, granddaughter
of Baron Solomon of Vienna, could not succeed
in inducing the relatives to maintain the old
firm. The head of the Vienna house, Baron
Albert, supported his aunt in her request, but
as none of the younger members of the family
was disposed to undertake to manage it, the
bank was closed by a family council.

The house was thus closed less than a
hundred years since it had been founded by
Maier Amschel. No longer are ledgers kept
in the rooms of the Rothschilds at Frankfort,
whence the sons of the house with the green
shield had set out to conquer the world; no
longer do the descendants of the young candi-
date for the rabbiship decide the fate of State-
loans. The rest is silence.

265

VII

THE VIENNA ROTHSCHILDS

FATE had decided that Solomon Rothschild,
the second son of Maier Amschel, was to
become the founder of one of the most import-
ant branches of the house. The head of the
famous financial dynasty had put his eldest son,
Anselm, in charge of the Frankfort bank, and
it was necessary for the younger brother to seek
a new field for the exercise of his business
ability. During the years in which he had
worked for the parent-house he had occasion to
visit Vienna, as well as Berlin, at times, and
he was enabled to decide which of these cities
would be the more suitable for his purpose.
He carefully sought information about the
financial world in both.

In this way he had become so familiar with
the financial conditions in Germany that his

brother Nathan, who already played a great
266

The Vienna Rothschilds

part in the money world at London, called him
to London in 1818 in order to entrust to him
the arrangement of the Prussian loan. At this
time he was disposed to choose Berlin for his
establishment. Anselm, however, was opposed
to this. " Prussia can stand a good deal," he
said, " even exhausting wars ; but it can hardly
stand two Rothschilds." He was himself quite
able to deal with Berlin from Frankfort, and
it would be better for Solomon to go to Vienna.
So Solomon went to the Austrian capital.

The financial condition of Austria, and the
great importance of Vienna as a centre, per-
suaded the Rothschilds to establish a bank
there, as they had done at London. The heavy
strain that Austria had sustained since 1792, in
the wars against the French Republic and
Napoleon, had almost exhausted the financial
resources of the country, and its economic con-
fusion afforded the Rothschilds a welcome field
for their specialty, the State-loan. Austria was
in dire need in this respect, and would not ask
whether assistance came from Jewish hands or
no. The Jews had always played a great part

267

The Romance of the Rothschilds

in financial matters in Austria, especially at
Vienna. The nobles were wealthy, but held
aloof from business, and the State was there-
fore compelled to turn to the Jews for the help
it needed. Although their money was liberally
used, however, they were still badly treated.
They had to pay a heavy capitation tax, and, in
order that they might be recognised, they had
to wear a pointed hat and a yellow patch on the
left arm. They were also restricted to certain
quarters of the towns for their residence;
at Vienna the suburb of Leopoldstadt was
set aside for them. They were afterwards ex-
pelled from this suburb in consequence of a
bloody riot caused by the Vienna students, and
the synagogues were turned into Christian
churches.

In the course of time the city was compelled
to put an end to this disorder, and the Jews
returned to Vienna, though they were still
deprived of the rights of citizenship. There
was, therefore, unbounded astonishment when,
in the year 1783, the Emperor Joseph II gave
the title of baron to a Jew, the banker Joseph
268

The Vienna Rothschilds

Michael Arnstein. He was the most prominent
of all the workers on the Vienna Exchange,
and at the time of the Vienna Congress he
and his colleague Eskeles gave brilliant feasts
which attracted the attention of the whole city.
The Austrian Treasury had done business with
Arnstein and Eskeles and other important
Viennese banks just before the Congress.
When political difficulties now multiplied for
the Government, most of the other bankers
declined to do further business with it, and
Arnstein and Eskeles, who did not withdraw,
came still further to the front. They were
joined by Fries & Co., Geymiiller & Co., and
Steiner & Co., and the four banking houses
arranged a number of loans for the Government
during the wars. Steiner & Co. then withdrew
in turn, after making an enormous profit, on
the ground that Steiner was advanced in years
and could no longer bear the strain of business.
The Rothschilds took the place of the retiring
firm, just at a time when a new State-loan was
being negotiated. They arranged this in the
form of a lottery, which proved very acceptable

269

The Romance of the Rothschilds

to the general public. It was thus the Roths-
childs who induced the monarchy to initiate
the State lotteries which became so popular in
Austria.

The second son of Maier Amschel was
already at that time an Austrian nobleman, yet
the baron did not venture for thirty years to
have a permanent residence in Vienna ; he lived
in a hotel, so that he should not be compelled
to submit to the authorities. He did not wish
to be a citizen of Vienna; as a Jew he could
not possess the rights of citizenship, and he
preferred to remain a foreigner, a citizen of
the free city of Frankfort. In time, however,
Vienna wished to express its thanks in some
way for the advantage which it had reaped
from the establishment of the Rothschilds.
The authorities wished to see a more cordial
relation between the city and the financier;
to see Solomon Rothschild, not a stranger
amongst them, but as much at home as Nathan
was at London and James at Paris. A deputa-
tion, therefore, waited upon him at the beginning
of 1843, with Count Kolawrat at its head, and
270

The Vienna Rothschilds

offered him, as a New Year's gift, the freedom
of the city.

Thus, although his Jewish nationality for-
bade him to be even a modest citizen of the
metropolis, his great services procured for
Baron Solomon the title of honorary freeman :
a distinction which he richly deserved for the
unselfishness with which he had always sought
to promote the interests of Vienna, and the
practice of philanthropy that had won him
general esteem and affection. He responded
to the honour by establishing a foundation, the
interest of which enabled youths of Vienna
to make use of the Academy of Arts in that
city.

Baron Solomon arranged his first Austrian
State-loan, with the minister of finance, Count
Stadion, in the year 1820. On the fourth of
April he, in conjunction with David Parish,
undertook to float a lottery-loan for a sum of
four million sterling. His second loan, amount-
ing to more than three million pounds, was also
negotiated in co-operation with Parish. When,

at the end of 1823, Austria again needed

271

The Romance of the Rothschilds

money, he found £2,000,000 by means of
London bankers. Six years later he again
found £2,000,000 for the Treasury; and a
smaller loan was arranged five years afterwards.
In the year 1839 he arranged a loan of
£2,500,000, and in 1842 one amounting to
£3,500,000. Austria was now in a position to
demand better terms, but Baron Solomon still
made a considerable profit on these trans-
actions.

The Austrian Government was extremely
grateful for his assistance; as Gentz says,
Metternich always spoke in the most flattering
terms of Baron Solomon's operations. And
not only did statesmen speak of him with
respect; other bankers, and even indirect
rivals, did him justice. When, for instance,
the head of the firm of Bethmann Brothers, of
Frankfort, went to Vienna in 1821, he visited
Baron Solomon, and said of him —

" I recognise that the Rothschilds have been
of very great assistance to governments, and
I may honestly say that I have no jealousy
or complaint on that account. Solomon, in
272

The Vienna Rothschilds

particular, is a man of estimable character,
and I have a very great regard for him. I
know on good authority that Solomon Roths-
child has said that the five brothers have
made a net profit of £500,0x30. It is a case
of the English proverb : ' Money makes
money/ '

The cordial co-operation of the five brothers
contributed materially to the prosperity of the
firm. There was no grumbling and murmur-
ing when the result of a transaction did not
come up to their expectations. Solomon was
liked by everybody on account of his ways and
obliging disposition. No one ever left his pre-
sence without having received some assistance.
He might have said in all truth that he had
conquered Vienna. While he won one success
after another, the firm of Fries & Co., which
had at one time been associated with him in
the Austrian loans, came to grief. The son of
the head of the firm, young Count Fries, was,
although he had inherited £670,000 from his
father, and this sum and the discounting busi-
ness gave him a large income, compelled in

s 273

The Romance of the Rothschilds

1824 to fly to Paris, where he died soon
afterwards.

This catastrophe forced the other three
associated houses — Geymiiller, Arnstein and
Eskeles, and Rothschild — to take into part-
nership the Vienna banker and millionaire
Baron Georg Sina, and from that time the
Austria State-loans were arranged by these
four firms in co-operation. The Geymiiller
firm, however, got into difficulties; indeed, a
warrant was issued against them for " dishonest
dealing with the moneys entrusted to them,"
and they were called to account. The suc-
cessors of Steiner & Co., Schikh Brothers, also
became bankrupt, and many other banks
wavered. The Rothschilds alone stood firm,
and seemed to be all-powerful in business.

Baron Solomon gave his attention to other
enterprises besides State-loans and banking.
He not only advanced considerable sums
to the nobles of Austria and Hungary and
members of the international aristocracy, but
founded limited companies and railways, from
which he made large profits. As Weil wrote,
274

The Vienna Rothschilds

about the middle of the last century : " Roths-
child is the head of the railways, even as
opposed to the Government. They are con-
trolled by a society, and this society is con-
trolled by one man, who can do what he pleases
with its members. This man is Rothschild."
Since that date the private companies have
nearly all passed into the Government's hands,
but at that date the chief commercial lines were
subject to the control of the Rothschilds.
Amongst others Solomon created the oldest
railway company in Austria, the " Emperor
Ferdinand Northern Line," and was thus the
man to introduce the locomotive into the
country. The railway was planned, it is true,
by Francis Xavier Riepl, but Rothschild pro-
vided the capital that was necessary for its
construction.

It was one of the chief characteristics of the
Rothschilds that they so quickly grasped the
situation and adopted sound projects. Baron
Solomon had his share of this gift of the family
and was one of the first to see the importance
of the new means of reducing distances. In
82 275

The Romance of the Rothschilds

the year 1836, when the Vienna station of the
line was built, a statue of Baron Solomon was
erected by the company in the waiting-hall.
The finest sculptor of the time executed it; it
was of life size, and of Carrara marble, and
the pedestal bore the inscription—

"THE EMPEROR FERDINAND
NORTHERN RAILWAY SOCIETY

TO ITS FOUNDER

BARON SOLOMON ROTHSCHILD"

On the other side of the pedestal were the
words —

"FOUNDED THIS RAILWAY, THE FIRST IN
AUSTRIA TO USE STEAM "

Rothschild also undertook the financing of
mines and smelting-works, not only in Austria,
but in other countries also, even as far away
as Spain. He farmed the quicksilver mines
of Almaden, after the united Spanish banks,
under the title " Banco Espanol de San Fer-
nando," had failed to secure the undertaking.

Baron Solomon's Madrid agents prevented
276

The Vienna Rothschilds

them from obtaining control of it, as this would
have made them dangerous rivals of the
Austrian quicksilver mines which produced
large quantities of mercury every year. The
struggle ended in a compromise and partner-
ship. A certain uniformity of prices was
agreed upon, and the Rothschilds secured a
larger profit.

The traditional luck of the Rothschilds never
left Baron Solomon. For instance, when, in
the month of November 1836, a great fire
raged at New York and threatened to destroy
whole streets, the Rothschilds' sulphur store,
which was in one of the threatened streets, was
uninjured. Not a building in that street took
fire. The remarkable fever for speculation
which was rife at that time also contributed
to their fortune. Every day witnessed new
foundations, and wherever there was a prospect
of profit, they hastened to take large batches of
shares. They played the leading part in the
establishment of banks, limited companies, and
industrial enterprises, as they could often make
more by constructing a railway than in arrang-

277

The Romance of the Rothschilds

ing a State-loan. According to a contemporary
they amassed a sum of more than £20,000,000
by commercial and industrial enterprises and
the creation of railways.

Baron Solomon also extended his operations
as far as Trieste, where he controlled the
market in conjunction with the firm of Mar-
purgo. He took the leading part in every
financial operation in Austria, and it could be
shown that State-loans had always in some way
to pass through his hands. On more than
one occasion the circumstances of the Empire
were confidentially submitted to him; he had
free access to ministers, and Metternich was
his special protector. The relation between
the two men had assumed a friendly character,
but Rothschild did not hesitate at times to
oppose the powerful minister. An occasion of
this kind occurred in 1831, at the time of the
Belgian Revolution, when a bitter and secret
struggle took place between the statesman and
the financier; the more dangerous as it was
concealed by a show of politeness. Metternich
pressed imperiously for money from Roths-

278

The Vienna Rothschilds

child, in order to be able to make an armed
intervention. Rothschild hesitated and de-
ferred his reply, as he wanted first to learn from
his brothers at Paris and London whether
this intervention would disturb their business.
Metternich became very impatient, and at last
secret instructions came from Nathan and
James that Solomon must be very careful; he
must on no account supply money for the war,
as England and France were on the side of
Belgium.

At this Baron Solomon resisted all the pres-
sure of Metternich; he refused the money, and
Metternich had to abandon his plan of armed
intervention. Rothschild's refusal must have
prevented the sacrifice of many human lives.
Metternich was, no doubt, very angry with the
baron for refusing his assistance, but he was
not wholly estranged, chiefly owing to the
mediation of Metternich's third wife, the
Countess Zichy-Ferraris. Solomon had won
the regard of the great diplomatist's wife, act-
ing on the principle that " Little gifts maintain
the life of friendship." Through her he came

279

The Romance of the Rothschilds

into touch with the members of the Hungarian
aristocracy, as we can trace in the ledgers of
the firm. They were more in need of money
than ever at that time, and frequently mort-
gaged their estates. Prince Esterhazy had
about £540,000 from Rothschild, Count
Hunyady about £40,000, Count Sandor
£56,000, Count Szechenyi £166,000, and
so on.

The Rothschilds wished to enlarge their
capital by dealing in landed property as well
as money. Both in Germany, France, and
Austria they bought extensive estates, and were
in many places allowed to place an entail on
the property. On one occasion Baron Solomon
received an even more conspicuous proof of
imperial favour. He had rendered some im-
portant service to the country, and the Emperor
received him in private audience and gave him
a ring from his own finger. The ring was not
of much intrinsic value to a millionaire, but
Rothschild was greatly concerned when, some
time afterwards, he lost it after taking a bath.
He promised a princely reward to any one who
280

The Vienna Rothschilds

discovered it, and, when the chief attendant at
the bathing establishment found it and restored
it to him, he gave her a sum amounting to
nearly £600, with which she set up a business
of her own.

The Viennese, especially the Jewesses at
Vienna, had a curious superstition in regard to
Rothschild's hand. They literally believed
that he turned into gold everything that he
touched, as Baron Solomon himself discovered
on one occasion. It was a very busy day on
the Exchange, and the porter informed the
baron that a lady, who would not give her
name, wished to see him. He was an amiable
and polite man, especially to ladies, and he
hastened at once to his mysterious visitor. A
lady veiled thickly to her feet was waiting for
him, and Baron Solomon, thinking that he had
to deal with a higher type of beggar, took out
his purse. The lady shook her head, however,
and said —

" I have not come to beg, baron, but to ask
a favour."

"What is it?"

281

The Romance of the Rothschilds

" My poor husband died two months ago,
just before my daughter was betrothed. As
you know, we Jews do not like a wedding
during a year of mourning. . . ."

" Do you want me to give you something for
her outfit or her dowry ? " asked the baron, who
was anxious to get back to his important
business on the Exchange.

" I am very grateful to you, but, fortunately,
my husband has left us in fair circumstances.
We are not rich, but we are not poor. . . ."

" What do you want then, madam, please ? "

" I have a favour to ask of you. I cannot
give my daughter a dowry, but would like to
give her something for luck. . . ."

Baron Rothschild was impatient at wasting
his time on trifles with a Jewish widow while
the fight proceeded on the Exchange.

"Well, what is it?" he said, again fingering
his purse.

The woman seized his arm.

" No, baron, I don't want money, but some-
thing to bring good luck to my daughter, as it
will do better than your money/'
282

The Vienna Rothschilds

" What do you want ? " the baron said in
astonishment.

" My husband, baron," she said quietly, " left
me three Rothschild lottery bonds. I am
giving them to my daughter, and, as I know
what a lucky hand you have, I beg you to touch
them, and I am sure that we shall then win a
good prize."

The baron touched the papers for her, and
she went away.

The younger generation of the Rothschilds
were more disposed to enjoy social life, espe-
cially in their earlier years. They were not
attracted to the art of making money, and,
indeed, the head of the family allowed none of
them to interfere in the business as long as he
lived. They had therefore plenty of time for
social distractions, and began to move in the
most exclusive circles at Vienna. Baron An-
selm, Solomon's son, led the "gilded youths"
of the town ; he used to drive always in a two-
horsed carriage, and pay the coachman four or
five times his fare. It did not threaten the
stability of the firm, but Baron Solomon greatly

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The Romance of the Rothschilds

disliked his son's conduct. One day Baron
Solomon needed to get to some place as quickly
as possible and took the first decent carriage
he found. It happened to be the carriage which
his son generally used, and the man looked
forward to receiving an excellent tip. He was
almost speechless with astonishment when it
came to paying. The baron handed him the
precise fare for the journey, and not a penny
more. The coachman made a long face, and
stood looking at the coin in his hand.

" Isn't that the correct fare ? " the baron
asked him.

"Oh, yes, the fare is correct," the man
muttered. " But the young baron would have
given me three or four times as much."

" Indeed," said the baron. " But, you see,
my son has a wealthy father, and I have
not."

Baron Anselm had had an excellent education .
He studied at Berlin University, and he had
almost as good a business capacity as his uncle
James, of Paris. He had served his apprentice-
ship at Paris, and had then gone to transact
284

The Vienna Rothschilds

important business at Berlin, Copenhagen,
Brussels, and other cities where the Roths-
childs had no establishments. It was clear that
he would be a good business-man, and the
family selected him to go to Frankfort, where
the advanced age of his uncle Anselm made it
advisable for him to have a younger assistant.
He remained there many years until, in
1880, his father died, and he was needed at
Vienna.

Baron Solomon had died suddenly on July
28, in his seventy-ninth year. In spite of his
advanced age he retained his vigour and a
remarkable freshness of mind, and was very
active even in his later years. He had only
one son and one daughter by the marriage
which he contracted with Caroline Stern. His
daughter Betty had married Baron James, of
Paris, and his son Anselm married Charlotte,
the eldest daughter of his uncle Nathan.

Baron Anselm took over the management
of the Vienna house, and continued the work
which his father had begun in Austria. He
was fifty-two years old at the time, and this

285

The Romance of the Rothschilds

fact and the unfortunate economic circum-
stances of the time explain how it was that he
entered upon few new operations during the
twenty years in which he remained at the head
of the firm, and was content to maintain the
old connections. The existing business was,
therefore, quietly developed, and, as extensive
operations were no longer contemplated, he
had time to follow his personal inclinations.
He was much interested in art, and had a very
valuable collection of pictures, statues, and
other artistic treasures, especially enamels and
gold-work, for which he had a special museum
erected. He was at the same time a good
friend of the poor of Vienna, as we may gather
from the many institutions which they owe to
his generosity. The Viennese have to thank
him for the establishment of a hospital, a
foundling hospital, an institute for the blind,
an institute for the deaf and dumb, and a
charitable association.

He was throughout life a member of the
Austrian Upper House, to which he had been
called on April 18, 1861.
286

The Vienna Rothschilds

At the beginning of his career at Vienna
Baron Anselm had shown considerable vigour.
After the death of his father, Austria, which
had created the Southern Railway with national
funds, wished to dispose of this enterprise,
with certain privileges, to a company. The
company was got together by the initiative of
Baron Anselm; it consisted of the Paris,
London, and Vienna Rothschilds, and took
over the railway. It also acquired the central
Italian lines, and had a capital of £10,000,000.
In the course of time it connected the two
sets of lines. Although these transactions did
not bring a large profit immediately, they
ultimately proved of great value to the
Rothschilds.

The construction of the "Austrian Credit-
bank for Trade and Commerce," with a capital
of £4,200,000, falls in the same period, the
year 1855. Baron Anselm had a large share
in this, and he sold on the Exchange the shares
of the new bank, which began at a nominal
price of £17, soon arose to £34, and for some
time continued to rise. This rapid advance

287

The Romance of the Rothschilds

was, however, unnatural in many respects and
it led to the "great crash," exposing the
Vienna grandchildren of Maier Amschel to the
fiercest attacks. The marvellous success of
the new Credit-bank had inspired the formation
of a large number of money businesses, the
shares of which also rose very rapidly; but, as
these new businesses had lamentably weak
foundations, the greater part of them failed at
the first financial crisis.

Baron Anselm had recognised in good time
this tendency to excessive speculation and even
noticed the symptoms of an approaching crisis.
He had himself speculated on the high rates,
but he was the first to unload his shares when
he saw the evil coming. He began to sell
quietly in the last days of March 1873, and
prices began to fall in April owing to the enor-
mous sales. People were alarmed on the
Exchange, but at first they attributed the
sales to over-anxiety on Rothschild's part and
thought that there were other reasons for the
fall.

Then came May, with a worse, rather than a
288

The Vienna Rothschilds

better, situation on the Exchange. On May 8,
1873, a broker asked Julius von Goldschmidt,
an agent of Baron Anselm, to take up securities
to the amount of £42,000, which he had bought
for a certain date ; he would afterwards buy the
papers back from the Rothschilds at a fixed
price. Goldschmidt said aloud —

" Forty thousand pounds ! All the banks
together are scarcely worth that."

His words fell like a cry of alarm on the
nervous and apprehensive Exchange. Prices
went down at a jump. No one would buy or
exchange, and every minute was announced the
failure of some new financier or firm. The
words of Rothschild's agent acted like a spark
upon a barrel of powder; at once there was a
fearful explosion with the most disastrous con-
sequences. In one day an appalling number
of banks and mercantile houses were ruined.
But the Rothschild firm came undamaged out
of the catastrophe.

Baron Anselm Rothschild was in his seventy-
second year when he died, on July 27, 1874,
nineteen years after the death of his father.
T 289

The Romance of the Rothschilds

He left five children, and his will directed that
the control of the business in Vienna should
pass to his youngest son, Albert. The daughters
Julia, Mathilda, and Louisa all married the
sons of Rothschilds, in accordance with the
wish of old Maier Amschel. Ferdinand, the
eldest son, married Eveline, the daughter of
Baron Lionel, of London ; he migrated to Eng-
land and was naturalised there. He took no
interest in business matters, either at London
or Vienna. He had no feeling for business at
all, and it was on that account that the father
chose his brother Albert, who was five years
younger, to succeed him. Baron Ferdinand
had no wish to traffic with his millions, and
devoted himself to social life in England.
Like the other English Rothschilds, he was on
very good terms with the Prince of Wales,
afterwards Edward VII, who was often enter-
tained at his country house.

The younger brother Albert was quite the
opposite of Ferdinand in point of character.
He was a thorough business man; he liked to
operate on a large scale, and in this respect
290

The Vienna Rothschilds

resembled Nathan, of London. He did his
work as head of the Vienna house in such a
way that, in order to keep his finger on the
pulse of the money market, he obtained an
almost sovereign influence on the inner life of
the Austrian National Bank, now known as the
" Austro-Hungarian Bank."

This brought Baron Albert into closer touch
with Hungary, and he soon afterwards founded
a petroleum refinery at Fiume. Hungary was
indebted to him for the conversion, in 1881, of
its six per cent, stock (£$0,000,000) into four
per cent. ; he is said to have made a profit of
from twelve to thirteen million pounds. This
profit was not made directly out of the con-
version, but by Rothschild accepting the stock
on his own account and selling it afterwards at
a higher price. The sales of these securities
were conducted so skilfully and opportunely
that Rothschild had none of them left, and so
did not surfer when, on January 22, 1882, the
crash followed " Black Sunday," and the price
of the funds fell twenty-five shillings below the
rate of issue.

291

The Romance of the Rothschilds

Black Sunday, or the " Bontoux-crash," as
that calamitous day is called, did not impair
the position of the Rothschilds, although Bon-
toux had opened a veritable campaign against
the Viennese financiers on the Exchange.
Bontoux won a number of small successes, but
on the day of the great battle, January 22,
Rothschild's opponents sustained a crushing
defeat.

Bontoux had some years before been general
director of the Austrian Southern Railway, and
had gradually become the representative of
the Vienna Rothschilds in that lucrative branch
of business. His high position gave him every
opportunity to study Rothschild's business
methods, and this gave him the idea of imitat-
ing him and becoming a Rothschild himself.
His confidence increased when he at length
came to an understanding with a number of
members of the higher financial world who had
long resented the great influence of the Roths-
childs and were quite willing to help to destroy
it. Bontoux undertook to do this. At the first

opportunity he threw off the mask of devoted
292

The Vienna Rothschilds

servant and broke with the Rothschilds. He
formed a coalition against them, at the head
of which were the Austrian Estate-Bank and
the Parisian Union Generale ; with the aid of
these he was to drive the Rothschilds from their
throne.

The Rothschilds soon realised the situation,
especially as the Union Generale made a stand
against the new Hungarian stock and attempted
to lower the price of it. They thought that they
could defeat their opponents at one blow by
'depreciating the price of the shares in the bank,
and so they sold the shares of the Union
Generale at increasingly low prices on the
Bourse at Paris. In this, however, they were
defeated. Bontoux had perceived their inten-
tion and held back all the shares, which he
could easily do as they were only nominally
on the market, and the Rothschilds could not
deliver more shares in the Union when the
term expired. That was a blow to the Roths-
childs. They did not suffer any great material
loss, but for a time they seemed to have aban-
doned the idea of fighting. This, however,

293

The Romance of the Rothschilds

was not the real reason for their reserve; it
was due to the death of Baron Alphonse, the
head of the Paris house. Baron Albert was
compelled to wait until he was fully in-
formed of the situation by his colleagues at
Paris.

When he at last received his information he
turned upon Bontoux and his associates with
all his strength, and before the end of 1881 one
of the banks that had joined the league against
him — the Banque de Lyon et de la Loire-
came to grief. This began the crisis ; it spread
from Lyons, and culminated at Vienna on
" Black Sunday," when Bontoux and his
associates were utterly routed.

Baron Albert was one of the first to hasten
to the relief of the money market, and it was
owing to his intervention that the crisis was so
quickly overcome both in Austria and France.
He had won a great victory, and his firm was
as solid as ever.

But, however great his financial success and
his merits were, the Vienna court, which had
conferred the title of baron on his grandfather,
294

The Vienna Rothschilds

would not admit the Jewish financier to its
circle. His soirees, which rivalled those of
any crowned head in display and luxury, were
never attended by members of the imperial
family. All his invitations were politely de-
clined. On one occasion, when the whole of
the archdukes and archduchesses had sent a
refusal, the soiree had to be postponed "on
account of measles." The wits of Vienna gave
the abandoned festival the name of "refusal-
measles." Baron Albert quietly endured their
malice. He was so conscious of the greatness of
the name of Rothschild that he did not regard
the affair as a question of small personal
vanity, but rather as a trial of strength, an
attempt to see whether the old prejudices
were yet disposed to give way to modern
ideas. The Hungarian premier at the time,
Koloman Tisza, understood this, and he
induced the court to admit Baron Albert to
its circle.

He remained at the head of the Vienna firm
until February 10, 1911. His death, in his
sixty-seventh year, was attributed to grief at

295

The Romance of the Rothschilds

the suicide of his youngest son Oscar, who shot
himself out of disappointment in love. The
father was so deeply shaken by this catastrophe
that he never recovered. His son Ludwig,
now thirty years old, is the present head of the
Vienna firm of the Rothschilds.

THE END

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Balla, Ignatius

The romance of the
Rothschilds